InterDigital Inc (IDCC)

Working capital 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
Total current assets US$ in thousands 1,230,820 1,167,620 1,344,680 1,050,280 1,002,550
Total current liabilities US$ in thousands 725,810 881,128 271,346 371,561 295,762
Working capital turnover 1.73 1.80 0.38 0.60 0.47

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $871,346K ÷ ($1,230,820K – $725,810K)
= 1.73

InterDigital Inc's working capital turnover has shown fluctuating trends over the past five years. The ratio has increased from 0.47 in December 31, 2020, to 0.60 in December 31, 2021, indicating a more efficient utilization of working capital in generating revenue. However, this trend reversed in the following years, with a decline to 0.38 in December 31, 2022.

The most significant improvement in efficiency occurred in December 31, 2023, where the working capital turnover surged to 1.80, suggesting a substantial increase in revenue generation relative to the working capital employed. This strong performance was somewhat sustained in December 31, 2024, with a working capital turnover of 1.73, although slightly lower than the previous year.

Overall, despite the fluctuations in the working capital turnover ratio, InterDigital Inc has demonstrated periods of enhanced efficiency in utilizing its working capital to generate revenue. It is essential for the company to consistently monitor and manage its working capital efficiently to maintain a healthy financial position.


Peer comparison

Dec 31, 2024

Company name
Symbol
Working capital turnover
InterDigital Inc
IDCC
1.73
Dolby Laboratories
DLB
1.64
Marathon Digital Holdings Inc
MARA
0.39