Iridium Communications Inc (IRDM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 790,723 | 721,034 | 614,500 | 583,439 | 560,444 |
| Receivables | US$ in thousands | 91,715 | 82,273 | 63,410 | 61,151 | 68,697 |
| Receivables turnover | 8.62 | 8.76 | 9.69 | 9.54 | 8.16 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $790,723K ÷ $91,715K
= 8.62
The receivables turnover ratio measures the efficiency of Iridium Communications Inc in collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Looking at the trend over the past five years, we see fluctuations in the receivables turnover ratio for Iridium Communications Inc. From 2019 to 2021, there was a steady increase in the ratio, suggesting improved efficiency in collecting receivables. However, in 2022 and 2023, we observed a slight decline in the ratio.
In 2023, the receivables turnover ratio was 8.62, indicating that Iridium Communications Inc collected its receivables approximately 8.62 times during the year. This implies that, on average, it takes around 42.3 days (365 days divided by 8.62) for the company to collect its accounts receivable.
Overall, the data suggests that Iridium Communications Inc has generally been efficient in collecting its receivables over the past five years, with some fluctuations in performance. Further analysis considering industry benchmarks and factors influencing the collection period could provide additional insights into the company's receivables management efficiency.
Peer comparison
Dec 31, 2023