InterDigital Inc (IDCC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 62,862 | 53,291 | 50,609 | 99,861 | 50,099 |
| Inventory | US$ in thousands | — | 15,238 | 0 | 72,467 | — |
| Inventory turnover | — | 3.50 | — | 1.38 | — |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $62,862K ÷ $—K
= —
Inventory turnover is a crucial ratio that indicates how efficiently a company manages its inventory. In the case of InterDigital Inc, the inventory turnover has shown fluctuations over the years. The data reveals that the inventory turnover was not available for the fiscal years ending December 31, 2020 and 2022, suggesting potential reporting issues or inventory management changes during those periods.
However, looking at the available data, the inventory turnover for December 31, 2021, was 1.38, while for December 31, 2023, it increased significantly to 3.50. This indicates that the company improved its efficiency in turning over its inventory in the year 2023 compared to 2021.
Overall, a higher inventory turnover ratio is generally preferable as it suggests that the company is selling its inventory more quickly, minimizing holding costs and potential obsolescence risks. InterDigital Inc's improvement in inventory turnover from 2021 to 2023 reflects positively on its inventory management practices and operational efficiency during that period.
Peer comparison
Dec 31, 2024