Iridium Communications Inc (IRDM)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 560,444 | 553,735 | 545,714 | 537,545 |
| Receivables | US$ in thousands | 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 | 68,697 | 70,060 | 91,628 | 68,460 |
| Receivables turnover | 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 | 8.16 | 7.90 | 5.96 | 7.85 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $790,723K ÷ $91,715K
= 8.62
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is collecting payments more quickly, which is generally seen as a positive sign.
Analyzing the trend of Iridium Communications Inc's receivables turnover ratio over the past eight quarters, we observe fluctuations in the ratio:
- In Q4 2023, the receivables turnover ratio was 8.62, showing an increase from the previous quarter's ratio of 7.84. This indicates an improvement in the company's ability to collect payments from customers.
- In Q3 and Q1 2023, the company also had relatively strong receivables turnover ratios of 7.84 and 7.53, respectively, suggesting efficient collection of payments.
- The highest receivables turnover ratio in the given period was seen in Q2 2022, at 8.82, while the lowest was in Q3 2022, at 7.87. Overall, the ratios have varied but generally remained above 7.5, indicating consistent performance in collecting receivables.
It is essential for Iridium Communications Inc to closely monitor its receivables turnover ratio to ensure that it maintains a healthy balance between extending credit to customers and collecting payments in a timely manner. A sustained high turnover ratio can indicate effective credit management and efficient collection practices, contributing to the company's overall financial health.
Peer comparison
Dec 31, 2023