Iridium Communications Inc (IRDM)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 175,282 | 168,102 | 155,117 | 143,333 | 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 |
| Payables | US$ in thousands | 19,715 | 13,561 | 15,026 | 22,554 | 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 |
| Payables turnover | 8.89 | 12.40 | 10.32 | 6.36 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $175,282K ÷ $19,715K
= 8.89
Iridium Communications Inc's payables turnover ratio has shown some fluctuations over the periods analyzed. The payables turnover ratio measures how efficiently a company manages its payables by comparing the cost of goods sold to its average accounts payable balance.
From March 31, 2020, to December 31, 2020, the payables turnover ratio increased steadily from 10.38 to 12.59, indicating that the company was paying its suppliers more frequently within these periods. However, the ratio saw a significant drop to 6.36 by the end of December 31, 2020, suggesting a slower rate of paying suppliers.
The ratio continued to fluctuate throughout the following periods, with values ranging from 6.30 to 12.40. The variations in the payables turnover ratio may be due to changes in the company's payment terms with suppliers, changes in the cost of goods sold, or changes in the composition of suppliers.
Overall, the payables turnover ratio for Iridium Communications Inc has shown some inconsistency over the analyzed periods, indicating potential changes in the company's approach to managing its payables. Further analysis and comparison with industry peers may provide additional insights into the efficiency of the company's payable management practices.
Peer comparison
Dec 31, 2024