InterDigital Inc (IDCC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 516,955 | 406,489 | 407,069 | 329,455 | 280,969 |
| Property, plant and equipment | US$ in thousands | 11,566 | 11,338 | 13,377 | 16,630 | 10,217 |
| Fixed asset turnover | 44.70 | 35.85 | 30.43 | 19.81 | 27.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $516,955K ÷ $11,566K
= 44.70
Interdigital Inc's fixed asset turnover has shown a consistent upward trend over the past five years. The ratio has increased from 31.22 in 2019 to 47.52 in 2023, indicating that the company has been generating more revenue relative to its fixed assets over this period. This improvement suggests that Interdigital Inc has been effectively utilizing its fixed assets to generate sales.
A high fixed asset turnover ratio is generally seen as positive, as it indicates that the company is efficient in utilizing its fixed assets to generate sales. It also implies that the company is able to quickly turn its investments in fixed assets into revenue.
The significant increase in fixed asset turnover from 2020 to 2023 signals that Interdigital Inc has been able to enhance its operational efficiency and productivity in utilizing its fixed assets. This improvement may be attributed to better asset management, operational efficiency, or increased sales volume.
Overall, the increasing trend in Interdigital Inc's fixed asset turnover ratio reflects the company's ability to generate more revenue from its fixed assets, which can be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2023