InterDigital Inc (IDCC)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 857,024 | 711,188 | 709,932 | 575,889 | 517,655 | 504,255 | 483,937 | 497,549 | 401,152 | 416,818 | 445,514 | 426,114 | 407,069 | 385,797 | 330,293 | 343,605 | 336,872 | 348,243 | 333,653 | 307,944 |
| Receivables | US$ in thousands | 204,993 | 237,677 | 245,176 | 167,588 | 137,127 | 75,934 | 79,801 | 66,854 | 117,299 | 64,103 | 63,183 | 55,290 | 88,240 | 49,734 | 46,214 | 70,334 | 69,592 | — | — | — |
| Receivables turnover | 4.18 | 2.99 | 2.90 | 3.44 | 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 | — | — | — |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $857,024K ÷ $204,993K
= 4.18
InterDigital Inc's receivables turnover ratio provides insight into how efficiently the company is collecting its accounts receivable. The ratio is calculated by dividing net credit sales by the average accounts receivable balance.
Analyzing the trend in InterDigital Inc's receivables turnover ratio over the past few years, we observe the following:
- The receivables turnover ratio was relatively stable between December 31, 2020, and March 31, 2023, ranging from 4.61 to 7.71. This indicates that the company was managing its receivables efficiently during this period.
- However, there was a significant drop in the receivables turnover ratio from March 31, 2023, to June 30, 2024, falling to as low as 2.90. This decline suggests potential issues with collecting accounts receivable promptly or an increase in credit sales relative to accounts receivable.
- Subsequently, there was a slight improvement in the receivables turnover ratio, reaching 4.18 by December 31, 2024. While this indicates some level of improvement in receivables management compared to the low point in June 30, 2024, the ratio still remains below the levels seen in the earlier periods.
In conclusion, InterDigital Inc's receivables turnover ratio has displayed fluctuations over the analyzed periods. Management should closely monitor and potentially address any issues affecting the efficiency of collecting accounts receivable to maintain healthy cash flows and working capital levels.
Peer comparison
Dec 31, 2024