Iridium Communications Inc (IRDM)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 169.26 | 178.54 | 201.93 | 235.65 | 229.08 | 175.92 | 139.06 | 98.97 | 116.05 | 122.93 | 92.04 | 97.69 | 103.86 | 84.09 | 107.29 | 117.32 | 129.49 | 134.52 | 147.02 | 148.66 |
| Days of sales outstanding (DSO) | days | 43.41 | 43.56 | 44.73 | 43.30 | 42.34 | 48.02 | 43.74 | 48.67 | 41.65 | 45.61 | 40.73 | 45.35 | 37.66 | 45.69 | 41.34 | 38.54 | 38.26 | 37.62 | 38.74 | 41.15 |
| Number of days of payables | days | 41.05 | 29.45 | 35.36 | 57.43 | 72.07 | 35.71 | 61.97 | 62.76 | 62.35 | 89.16 | 46.74 | 52.23 | 57.91 | 39.29 | 37.41 | 38.73 | 57.37 | 29.00 | 33.55 | 35.15 |
| Cash conversion cycle | days | 171.62 | 192.66 | 211.30 | 221.51 | 199.35 | 188.23 | 120.83 | 84.88 | 95.34 | 79.38 | 86.03 | 90.81 | 83.61 | 90.49 | 111.22 | 117.12 | 110.38 | 143.14 | 152.20 | 154.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 169.26 + 43.41 – 41.05
= 171.62
The cash conversion cycle of Iridium Communications Inc has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024.
Initially, the company's cash conversion cycle was relatively high at around 150 days, indicating a longer time taken to convert investments in inventory into cash receipts from customers. However, there has been a decreasing trend observed in the cash conversion cycle from 2021 onwards, signaling efficiency improvements in managing working capital.
By December 31, 2024, the cash conversion cycle had decreased to 171.62 days, suggesting that the company was able to improve its cash flow management and optimize its working capital cycle during that period. This reduction indicates that Iridium Communications Inc was able to shorten the time it takes to convert its investments in inventory and accounts receivable into cash.
Overall, the decreasing trend in the cash conversion cycle is a positive indication of the company's ability to manage its working capital efficiently and generate cash flows more effectively. Strengthening the management of working capital can contribute to improving the company's liquidity position and overall financial performance.
Peer comparison
Dec 31, 2024