InterDigital Inc (IDCC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.66 | 2.87 | 2.26 | — | — | 3.20 | 3.60 | 5.45 | 1.38 | 6.25 | 5.50 | 4.04 | — | — | — | — | — | — | — | — |
| Receivables turnover | 3.78 | 6.64 | 6.06 | 7.44 | 3.42 | 6.50 | 7.05 | 7.71 | 4.61 | 7.76 | 7.15 | 4.89 | 4.84 | — | — | — | 8.09 | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.81 | 0.62 | 0.65 | 0.53 | 0.37 | 0.39 | 0.55 | 0.62 | 0.60 | 0.55 | 0.48 | 0.47 | 0.48 | 0.49 | 0.47 | 0.45 | 0.43 | 0.41 | 0.42 | 0.67 |
Interdigital Inc's activity ratios provide insight into how efficiently the company is managing its assets and operations.
1. Receivables turnover: This ratio measures how effectively the company is collecting payments from its customers. A higher ratio indicates that the company is collecting receivables quickly. Interdigital's receivables turnover has varied over the past eight quarters, with a peak of 5.63 in Q1 2022 and a low of 0.97 in Q3 2022. In Q4 2023, the ratio was 4.01, suggesting an improvement in the collection of accounts receivable.
2. Payables turnover: The payables turnover ratio evaluates how efficiently the company is paying its suppliers. A higher ratio indicates that the company is paying its suppliers quickly. However, Interdigital's payables turnover has been consistently 0.00 throughout the quarters reviewed, suggesting that the company is not effectively managing its payables.
3. Working capital turnover: This ratio shows how well the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales. Interdigital's working capital turnover has shown fluctuations over the quarters, with Q4 2023 showing a ratio of 1.92, indicating an improvement compared to previous quarters.
Overall, while Interdigital Inc's receivables turnover and working capital turnover ratios have shown some fluctuations, there is room for improvement in effectively managing payables to enhance the company's overall efficiency in its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 99.69 | 127.13 | 161.60 | — | — | 114.23 | 101.53 | 67.00 | 264.75 | 58.40 | 66.40 | 90.25 | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 96.69 | 54.96 | 60.19 | 49.04 | 106.73 | 56.13 | 51.76 | 47.36 | 79.12 | 47.05 | 51.07 | 74.71 | 75.40 | — | — | — | 45.09 | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The days of sales outstanding (DSO) for Interdigital Inc have shown fluctuations over the past eight quarters, ranging from a low of 64.83 days in Q2 2022 to a high of 376.77 days in Q3 2022. This metric indicates the average number of days it takes for the company to collect revenue from its customers after a sale is made. A lower DSO is generally preferred as it suggests faster collection of receivables.
However, without data on days of inventory on hand and number of days of payables, a comprehensive analysis of Interdigital Inc's activity ratios, including cash conversion cycle, working capital efficiency, and overall liquidity management, cannot be accurately conducted. These additional metrics would provide a more complete picture of the company's operational efficiency and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 44.76 | 45.10 | 41.42 | 43.47 | 35.38 | 41.01 | 39.56 | 34.60 | 30.43 | 27.20 | 22.64 | 21.99 | 20.26 | 21.44 | 28.00 | 30.06 | 30.12 | 28.04 | 27.04 | 27.27 |
| Total asset turnover | 0.29 | 0.28 | 0.27 | 0.28 | 0.21 | 0.22 | 0.28 | 0.27 | 0.25 | 0.23 | 0.22 | 0.22 | 0.21 | 0.21 | 0.22 | 0.21 | 0.19 | 0.17 | 0.19 | 0.20 |
Interdigital Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales. Looking at the fixed asset turnover ratio, which measures the company's ability to generate sales from fixed assets, we observe a generally increasing trend from Q1 2022 to Q4 2023. The ratio ranged from 36.08 to 47.52 during this period, showing that Interdigital has been able to generate increasing sales from its fixed assets over time.
In contrast, the total asset turnover ratio, which assesses the company's overall efficiency in generating sales from all assets, presents a somewhat fluctuating pattern. Although there isn't a clear trend in this ratio, it varied between 0.21 and 0.31 during the period. This indicates that Interdigital's ability to generate sales in relation to its total assets fluctuated, potentially due to changes in the asset base or revenue generation.
Overall, the fixed asset turnover ratio suggests that Interdigital has been effectively utilizing its fixed assets to generate sales, while the total asset turnover ratio highlights some volatility in the efficiency of generating overall sales from all assets. Further analysis and comparison with industry benchmarks can provide deeper insights into Interdigital's operational efficiency and asset utilization strategies.