Iridium Communications Inc (IRDM)
Working capital 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 |
| Total current assets | US$ in thousands | 292,730 | 271,084 | 306,204 | 424,410 | 347,821 |
| Total current liabilities | US$ in thousands | 169,214 | 131,554 | 141,577 | 108,836 | 113,072 |
| Working capital turnover | 6.73 | 5.67 | 4.38 | 1.95 | 2.49 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $830,682K ÷ ($292,730K – $169,214K)
= 6.73
The working capital turnover for Iridium Communications Inc has shown a positive trend over the past five years. In 2020, the working capital turnover was 2.49, indicating that the company was able to generate $2.49 in revenue for every dollar of working capital invested.
However, in 2021, the working capital turnover decreased to 1.95, suggesting a slight decrease in efficiency in utilizing its working capital.
From 2022 onwards, there was a significant improvement in the working capital turnover. In 2022, the ratio increased to 4.38, indicating that the company was able to generate $4.38 in revenue for every dollar of working capital. This trend continued in 2023 and 2024, with the ratios reaching 5.67 and 6.73 respectively, demonstrating a substantial improvement in efficiency in managing the working capital.
Overall, the increasing trend in the working capital turnover ratios showcases that Iridium Communications Inc has been able to optimize its working capital effectively to generate more revenue, indicating improved operational efficiency and financial performance.
Peer comparison
Dec 31, 2024