Iridium Communications Inc (IRDM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 145,206 | 125,104 | 102,074 | 91,552 | 95,565 |
| Payables | US$ in thousands | 28,671 | 21,372 | 16,196 | 14,390 | 6,713 |
| Payables turnover | 5.06 | 5.85 | 6.30 | 6.36 | 14.24 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $145,206K ÷ $28,671K
= 5.06
The payables turnover ratio for Iridium Communications Inc has shown fluctuations over the past five years. The ratio indicates the efficiency with which the company is managing its accounts payables.
In 2023, the payables turnover ratio was 7.85, indicating that the company paid off its accounts payables approximately 7.85 times in that year. The decrease from the previous year could suggest that the company took longer to pay off its suppliers, possibly due to changes in payment terms or cash flow constraints.
Comparing this to the ratios from 2022 and 2021, where the ratios were 9.41 and 9.29 respectively, we can see a declining trend in the efficiency of payables turnover. This may raise concerns about the company's liquidity position and its ability to manage supplier relationships effectively.
In contrast, the payables turnover was notably higher in 2019 at 21.62, indicating a more efficient use of accounts payables that year. However, it is important to consider the context behind this exceptionally high ratio and whether it was sustainable over the long term.
Overall, the fluctuation in Iridium Communications Inc's payables turnover ratio suggests varying levels of efficiency in managing its payment obligations to suppliers over the years, which could be influenced by factors such as cash flow, working capital management, and supplier relationships.
Peer comparison
Dec 31, 2023