InterDigital Inc (IDCC)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 307,764 | 280,929 | 290,301 | 288,591 |
| Total assets | US$ in thousands | 1,770,810 | 1,826,480 | 1,760,180 | 1,748,560 | 1,900,100 | 1,928,220 | 1,617,500 | 1,596,030 | 1,628,160 | 1,700,610 | 1,497,080 | 1,561,870 | 1,616,280 | 1,640,490 | 1,538,760 | 1,464,730 | 1,612,080 | 1,628,300 | 1,545,070 | 1,479,750 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $517,655K ÷ $1,770,810K
= 0.29
Interdigital Inc's total asset turnover ratio measures the company's efficiency in generating sales revenue from its total assets. The trend in total asset turnover over the past eight quarters shows variability, ranging from a low of 0.21 in Q4 2022 to a high of 0.31 in Q4 2023.
The fluctuations in the total asset turnover ratio indicate changes in how effectively Interdigital is utilizing its assets to generate sales. A higher ratio reflects more efficient asset utilization, indicating that the company is generating more revenue per dollar of assets. In contrast, a lower ratio suggests less efficiency in utilizing assets to generate sales.
Overall, with the total asset turnover ratio ranging between 0.21 and 0.31, it is essential for Interdigital Inc to closely monitor and potentially improve its asset utilization efficiency to maximize sales generated from its total assets. This may involve strategies such as optimizing inventory management, enhancing capacity utilization, or improving sales and marketing initiatives to increase revenue relative to total assets.
Peer comparison
Dec 31, 2023