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