Iridium Communications Inc (IRDM)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 175,382 | 145,206 | 125,104 | 102,074 | 91,552 |
| Payables | US$ in thousands | 19,715 | 28,671 | 21,372 | 16,196 | 14,390 |
| Payables turnover | 8.90 | 5.06 | 5.85 | 6.30 | 6.36 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $175,382K ÷ $19,715K
= 8.90
Iridium Communications Inc's payables turnover ratio has shown fluctuations over the past five years. The ratio decreased from 6.36 in December 2020 to 5.06 in December 2023, indicating a longer time taken to pay suppliers.
However, there was a notable improvement in the payables turnover ratio in December 2024, reaching 8.90. This surge suggests that Iridium Communications Inc has been able to manage its payables more efficiently, possibly by negotiating better payment terms with suppliers or streamlining its accounts payable processes.
Overall, the trend in Iridium Communications Inc's payables turnover ratio indicates variability in how quickly the company is paying its suppliers. It is essential for the company to strike a balance between managing cash flow effectively and maintaining positive relationships with its suppliers.
Peer comparison
Dec 31, 2024