InterDigital Inc (IDCC)
Working capital 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 current assets | US$ in thousands | 1,167,620 | 1,344,680 | 1,050,280 | 1,002,550 | 1,016,330 |
| Total current liabilities | US$ in thousands | 881,128 | 271,346 | 371,561 | 295,762 | 305,558 |
| Working capital turnover | 1.80 | 0.38 | 0.60 | 0.47 | 0.40 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $516,955K ÷ ($1,167,620K – $881,128K)
= 1.80
Interdigital Inc's working capital turnover has shown varying trends over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
In 2023, Interdigital Inc's working capital turnover significantly improved to 1.92 from 0.38 in 2022, indicating a substantial enhancement in the efficiency of using working capital to generate revenue. This improvement suggests that the company was able to generate more revenue relative to its working capital investment, which is a positive sign for operational efficiency.
In contrast, the working capital turnover in 2021 and 2020 was 0.63 and 0.49, respectively, showing a moderate level of efficiency in utilizing working capital. These ratios indicate that the company was generating revenue, but not as efficiently compared to 2023.
Furthermore, in 2019, the working capital turnover was 0.45, indicating a lower level of efficiency in utilizing working capital compared to the more recent years.
Overall, the increasing trend in working capital turnover over the years suggests that Interdigital Inc has made improvements in utilizing its working capital more effectively to generate revenue. This can be a positive indicator of the company's operational efficiency and financial management. However, it is essential to assess other financial metrics and factors to gain a comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023