InterDigital Inc (IDCC)
Total 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 |
| Total assets | US$ in thousands | 1,770,810 | 1,900,100 | 1,628,160 | 1,616,280 | 1,612,080 |
| Total asset turnover | 0.29 | 0.21 | 0.25 | 0.20 | 0.17 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $516,955K ÷ $1,770,810K
= 0.29
Interdigital Inc's total asset turnover has fluctuated over the past five years, with the ratio improving from 0.20 in 2019 to 0.31 in 2023. This indicates that the company generated $0.31 in sales for every $1 of total assets in 2023, up from $0.20 in 2019. A higher total asset turnover ratio generally signifies that the company is utilizing its assets more efficiently to generate sales.
In 2022, the total asset turnover was 0.21, which was lower than the previous and subsequent years. This lower ratio suggests that the company was less efficient in generating sales from its assets that year. The ratio increased to 0.26 in 2021 and then slightly decreased to 0.22 in 2020, indicating some fluctuation in asset utilization efficiency during those years.
Overall, Interdigital Inc's total asset turnover trend shows some variability in asset efficiency over the years, with a notable improvement in 2023. This improvement could be indicative of better management of assets to drive sales and potentially increase profitability.
Peer comparison
Dec 31, 2023