Iridium Communications Inc (IRDM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 830,682 | 808,198 | 784,915 | 784,230 | 790,723 | 765,535 | 769,021 | 754,775 | 721,034 | 694,988 | 672,226 | 644,376 | 614,500 | 562,328 | 564,734 | 567,318 | 583,439 | 575,806 | 569,119 | 572,046 |
| Receivables | US$ in thousands | 98,803 | 96,457 | 96,189 | 93,025 | 91,715 | 100,718 | 92,147 | 100,636 | 82,273 | 86,847 | 75,006 | 80,055 | 63,410 | 70,390 | 63,958 | 59,895 | 61,151 | 59,340 | 60,397 | 64,485 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $830,682K ÷ $98,803K
= 8.41
The receivables turnover ratio for Iridium Communications Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period.
The trend in the receivables turnover shows a general decrease from a high of 9.70 on September 30, 2020, to a low of 7.50 on March 31, 2023, before slightly recovering. This suggests a slower collection of receivables in the intervening period.
A receivables turnover ratio of less than 1 typically signals a longer collection period, while a ratio greater than 1 reflects a shorter collection period. In Iridium's case, the ratios range between 7.50 and 9.70, indicating that the company generally collects its receivables between 7.5 to 9.7 times a year during the period under review.
It is essential for the company to monitor its receivables turnover ratio closely as a low ratio may indicate potential issues with credit policies, collection efforts, or the quality of receivables. Conversely, a high ratio could suggest overly stringent credit policies that may be impacting sales.
Overall, the trend in Iridium Communications Inc's receivables turnover ratio shows some variability but remains within a moderate range, indicating reasonable efficiency in collecting accounts receivable over the period.
Peer comparison
Dec 31, 2024