Iridium Communications Inc (IRDM)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 2.16 2.04 1.81 1.55 1.59 2.07 2.62 3.69 3.15 2.97 3.97 3.74 3.51 4.34 3.40 3.11 2.82 2.71 2.48 2.46
Receivables turnover 8.41 8.38 8.16 8.43 8.62 7.60 8.35 7.50 8.76 8.00 8.96 8.05 9.69 7.99 8.83 9.47 9.54 9.70 9.42 8.87
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
Working capital turnover 6.73 3.68 5.34 2.97 5.67 5.72 5.32 4.65 4.38 3.00 2.84 2.52 1.95 1.88 2.40 2.42 2.49 3.10 4.47 6.29

Iridium Communications Inc's inventory turnover has exhibited fluctuations over the periods analyzed, ranging from a low of 1.55 to a high of 4.34. This suggests varying efficiency in managing inventory levels and converting them into sales.

In terms of receivables turnover, it is evident that the company has managed to collect outstanding receivables quite efficiently, with the turnover ratio ranging from 7.50 to 9.70. A higher turnover ratio indicates a shorter time taken to collect receivables, reflecting positively on cash flow management.

The payables turnover ratio for Iridium Communications Inc has also fluctuated during the periods examined, indicating changes in the company's payment practices. The turnover ratio ranged from 4.09 to 12.59, showcasing variations in the speed of paying off suppliers.

Analyzing the working capital turnover, we observe a range of 1.88 to 6.73, indicating how effectively the company utilizes its working capital to generate revenue. Higher turnover ratios are generally favorable as they reflect efficient utilization of resources to generate sales.

Overall, a detailed analysis of Iridium Communications Inc's activity ratios reveals insights into the company's operational efficiency, inventory management, receivables collection, payables management, and utilization of working capital.

Average number of days

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
Days of inventory on hand (DOH) days 169.26 178.54 201.93 235.65 229.08 175.92 139.06 98.97 116.05 122.93 92.04 97.69 103.86 84.09 107.29 117.32 129.49 134.52 147.02 148.66
Days of sales outstanding (DSO) days 43.41 43.56 44.73 43.30 42.34 48.02 43.74 48.67 41.65 45.61 40.73 45.35 37.66 45.69 41.34 38.54 38.26 37.62 38.74 41.15
Number of days of payables days 41.05 29.45 35.36 57.43 72.07 35.71 61.97 62.76 62.35 89.16 46.74 52.23 57.91 39.29 37.41 38.73 57.37 29.00 33.55 35.15

Iridium Communications Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The DOH ratio measures how many days, on average, it takes for the company to sell its inventory. A decreasing trend in DOH over time, from 148.66 days in March 2020 to 169.26 days in December 2024, indicates that Iridium Communications has been improving its inventory management efficiency. However, there was a spike in DOH to 235.65 days in March 2024, suggesting possible issues with inventory control during that period.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect its accounts receivable. The trend in DSO shows fluctuations over the years, with periods of increase and decrease. The company managed to reduce DSO from 45.69 days in September 2021 to 43.41 days in December 2024. A lower DSO indicates that Iridium Communications has been improving its collection process and efficiency in converting credit sales into cash.

3. Number of Days of Payables: This ratio measures how long the company takes to pay its suppliers. A longer payment period may indicate that Iridium Communications is conserving cash or taking advantage of supplier credit terms. The trend in the number of days of payables shows fluctuations, with some periods showing longer payment periods compared to others. Notably, the company increased its payables period from 29.45 days in September 2024 to 41.05 days in December 2024.

Overall, analyzing these activity ratios collectively can provide a comprehensive view of how effectively Iridium Communications manages its working capital and the efficiency of its operational processes related to inventory, receivables, and payables management.

Long-term

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
Fixed asset turnover 0.40 0.38 0.37 0.36 0.36 0.34 0.34 0.32 0.30 0.28 0.26 0.25 0.23 0.21 0.20 0.20 0.20 0.19 0.19 0.18
Total asset turnover 0.31 0.29 0.29 0.29 0.30 0.28 0.28 0.26 0.24 0.23 0.22 0.21 0.19 0.18 0.18 0.17 0.17 0.17 0.17 0.17

The fixed asset turnover ratio for Iridium Communications Inc has been showing a positive trend over the years, increasing from 0.18 as of March 31, 2020, to 0.40 as of December 31, 2024. This indicates that the company's ability to generate revenue from its fixed assets has been improving steadily.

On the other hand, the total asset turnover ratio, which measures the company's overall efficiency in generating revenue from all assets, has also been increasing gradually. The ratio rose from 0.17 as of March 31, 2020, to 0.31 as of December 31, 2024. This suggests that Iridium Communications Inc has been effectively utilizing its total assets to generate revenue over the years.

Overall, both the fixed asset turnover and total asset turnover ratios reflect a positive trend in Iridium Communications Inc's long-term activity efficiency, indicating improving operational performance and asset utilization.