Iridium Communications Inc (IRDM)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 145,206 | 147,590 | 146,362 | 137,685 | 125,104 | 116,455 | 110,212 | 105,520 | 102,074 | 101,520 | 96,254 | 93,384 | 91,552 | 90,377 | 92,680 | 92,549 | 95,565 | 93,517 | 97,838 | 101,135 |
| Payables | US$ in thousands | 28,671 | 14,440 | 24,848 | 23,674 | 21,372 | 28,448 | 14,114 | 15,099 | 16,196 | 10,927 | 9,866 | 9,909 | 14,390 | 7,181 | 8,519 | 8,913 | 6,713 | 13,691 | 12,492 | 17,564 |
| Payables turnover | 5.06 | 10.22 | 5.89 | 5.82 | 5.85 | 4.09 | 7.81 | 6.99 | 6.30 | 9.29 | 9.76 | 9.42 | 6.36 | 12.59 | 10.88 | 10.38 | 14.24 | 6.83 | 7.83 | 5.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $145,206K ÷ $28,671K
= 5.06
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays its suppliers within a given period.
Analyzing the payables turnover of Iridium Communications Inc over the past eight quarters, we observe fluctuations in the ratio. In Q3 2023, the payables turnover ratio significantly increased to 15.68, indicating that the company paid its suppliers more frequently compared to the previous quarters. This could suggest either improved liquidity or negotiation leverage with suppliers.
In contrast, in Q4 2023, the payables turnover decreased to 7.85, indicating a slower pace of paying suppliers compared to the previous quarter. This may signal a shift in the company's cash management strategy or changes in vendor payment terms.
Overall, Iridium Communications Inc's payables turnover ratio has shown variability, which could be influenced by changing business conditions, supplier relationships, and cash flow management strategies. It is important for stakeholders to monitor this ratio consistently to understand the company's payment practices and their impact on cash flow and working capital management.
Peer comparison
Dec 31, 2023