InterDigital Inc (IDCC)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 871,346 | 516,955 | 406,489 | 407,069 | 329,455 |
| Receivables | US$ in thousands | 204,993 | 137,127 | 117,299 | 88,240 | 69,592 |
| Receivables turnover | 4.25 | 3.77 | 3.47 | 4.61 | 4.73 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $871,346K ÷ $204,993K
= 4.25
InterDigital Inc's receivables turnover has shown some fluctuation over the past five years. In 2020, the company had a receivables turnover of 4.73, indicating that it collected its accounts receivable approximately 4.73 times during the year. However, this ratio decreased to 4.61 in 2021, suggesting a slightly slower collection of receivables.
In 2022, the receivables turnover ratio dropped more significantly to 3.47, indicating that the company took longer to collect its receivables compared to the previous years. This could be a cause for concern as it may indicate issues with credit policies or the collectability of receivables.
The following year, in 2023, there was a slight improvement as the receivables turnover ratio increased to 3.77, but it was still below the levels seen in 2020 and 2021. This may suggest that the company made some efforts to expedite the collection of its accounts receivable.
By the end of 2024, InterDigital Inc's receivables turnover ratio rose to 4.25, showing a positive trend in collecting receivables more efficiently compared to the previous year.
Overall, fluctuations in the receivables turnover ratio can provide insights into the company's efficiency in collecting outstanding receivables. A higher turnover ratio generally indicates a more efficient collection process, while a lower ratio may point to potential issues in collecting receivables timely. Further analysis of the company's receivables management and credit policies may be required to fully understand the changes in the receivables turnover ratio over the years.
Peer comparison
Dec 31, 2024