Iridium Communications Inc (IRDM)
Working capital 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 |
| Total current assets | US$ in thousands | 271,084 | 252,931 | 268,682 | 278,725 | 306,204 | 358,226 | 342,823 | 351,423 | 424,410 | 392,570 | 321,782 | 322,313 | 347,821 | 286,539 | 229,309 | 180,262 | 342,935 | 293,922 | 320,741 | 396,888 |
| Total current liabilities | US$ in thousands | 131,554 | 119,003 | 124,241 | 116,321 | 141,577 | 126,836 | 105,990 | 95,686 | 108,836 | 93,464 | 86,914 | 88,317 | 113,072 | 100,671 | 101,942 | 89,327 | 113,751 | 323,068 | 284,895 | 376,442 |
| Working capital turnover | 5.67 | 5.72 | 5.32 | 4.65 | 4.38 | 3.00 | 2.84 | 2.52 | 1.95 | 1.88 | 2.40 | 2.42 | 2.49 | 3.10 | 4.47 | 6.29 | 2.45 | — | 15.22 | 26.29 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $790,723K ÷ ($271,084K – $131,554K)
= 5.67
Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover indicates that the company is effectively managing its working capital to support sales.
Based on the data provided for Iridium Communications Inc, the working capital turnover has been fluctuating over the quarters. In Q4 2023, the working capital turnover was 5.67, which decreased from 5.90 in the previous quarter. This suggests a slight decline in the efficiency of utilizing working capital to support sales.
Comparing the most recent quarters to earlier periods, there has been a noticeable improvement in the working capital turnover for Iridium Communications Inc. The company has significantly improved its working capital efficiency from Q1 2022 to Q4 2023, with the turnover increasing from 2.49 to 5.67.
Overall, a consistent and increasing trend in working capital turnover signals that Iridium Communications Inc is effectively managing its working capital to generate revenue efficiently. However, it is important to monitor any fluctuations to ensure sustained operational efficiency and financial performance.
Peer comparison
Dec 31, 2023