Iridium Communications (Iridium Communications) Inventory Turnover

: 0.69 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Iridium Communications's Cost of Goods Sold for the three months ended in Dec. 2023 was $55.6 Mil. Iridium Communications's Average Total Inventories for the quarter that ended in Dec. 2023 was $81.1 Mil. Iridium Communications's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Iridium Communications's Days Inventory for the three months ended in Dec. 2023 was 133.13.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Iridium Communications's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.42.

Iridium Communications Inventory Turnover Historical Data

The historical data trend for Iridium Communications's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Iridium Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

4.30

3.94

4.89

5.85

3.44

Iridium Communications Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																1.44	1.65	1.11	0.85	0.69

Iridium Communications Inventory Turnover Calculation

Iridium Communications's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	225.12	/ (	(39.776	+	91.135)	/	2 )
=	225.12	/	65.4555
=	3.44

Iridium Communications's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	55.614	/ (	(71.136	+	91.135)	/	2 )
=	55.614	/	81.1355
=	0.69

Iridium Communications (NAS:IRDM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Iridium Communications's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	81.1355	/	55.614	*	365 / 4
	=	133.13

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Iridium Communications's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	81.1355	/	194.74
	=	0.42

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Iridium Communications Inventory Turnover Related Terms

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Iridium Communications (Iridium Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Iridium Communications Inc (NAS:IRDM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

6IC:Germany 6IC:Germany

Address

1750 Tysons Boulevard, Suite 1400, McLean, VA, USA, 22102

Website

https://www.iridium.com

Iridium Communications Inc offers voice and data communications services and products to businesses, U.S. and international government agencies, and other customers on a global basis. The company is a provider of mobile voice and data communications services through a constellation of low earth-orbiting satellites. Reaching across land, sea, and air, including the polar regions, Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies around the world.

Executives

Matthew J Desch	director, officer: Chief Executive Officer	C/O SAIC, 10260 CAMPUS POINT DR M/S F3, SAN DIEGO CA 92121
Jacqueline E Yeaney	director	2002 SUMMIT BOULEVARD, SUITE 100, ATLANTA GA 30319
Bryan J. Hartin	officer: EVP-Sales and Marketing	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Robert H Niehaus	director, officer: Senior Vice President	4747 GAILLARDIA PARKWAY, OKLAHOMA CITY OK 73142
Suzanne E. Mcbride	officer: Chief Operations Officer	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Barry West	director	NEXTEL, 2001 EDMUND HALLEY DR, RESTON VA 20191
Scott Scheimreif	officer: EVP-Government Programs	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Thomas C Canfield	director	C/O SPIRIT AIRLINES, INC., 2800 EXECUTIVE WAY, MIRAMAR FL 33025
Kathleen A. Morgan	officer: Chief Legal Officer	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD SUITE 1400, MCLEAN VA 22102
Thomas Fitzpatrick	officer: Chief Financial Officer	C/O CENTENNIAL COMMUNICATIONS CORP, 3349 RTE 138, WALL NJ 07719
Henrik O. Schliemann	director	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Timothy Kapalka	officer: VP Iridium Satellite LLC	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, MCLEAN VA 22102
Parker William Rush	director	5525 LBJ FREEWAY, DALLAS TX 75240
A B Krongard	director	C/O UNDER ARMOUR, INC., 1020 HULL STREET, BALTIMORE MD 21230
Kay Sears	director	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102