Iridium Communications Inc (IRDM)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 830,682 | 790,723 | 721,034 | 614,500 | 583,439 |
| Receivables | US$ in thousands | 98,803 | 91,715 | 82,273 | 63,410 | 61,151 |
| Receivables turnover | 8.41 | 8.62 | 8.76 | 9.69 | 9.54 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $830,682K ÷ $98,803K
= 8.41
Based on the data provided, Iridium Communications Inc's receivables turnover has been relatively stable over the past five years. The receivables turnover ratio indicates the company's effectiveness in collecting outstanding receivables during a specific period.
The trend shows that the receivables turnover ratio was 9.54 in 2020, slightly increasing to 9.69 in 2021. However, in the following years, there was a slight decrease in the ratio to 8.76 in 2022, 8.62 in 2023, and further down to 8.41 in 2024.
A higher ratio generally indicates that the company is more efficient in collecting its accounts receivable, while a decreasing trend may raise concerns about the company's credit policies, collection process, or the quality of its receivables.
Iridium Communications Inc's management should carefully monitor this ratio to ensure that their collection processes are efficient and effective in converting credit sales into cash promptly. They may need to assess and potentially improve their credit policies and collection strategies to maintain a healthy receivables turnover ratio.
Peer comparison
Dec 31, 2024