InterDigital Inc (IDCC)
Working capital 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 current assets | US$ in thousands | 1,167,620 | 1,257,690 | 1,192,150 | 1,196,410 | 1,344,680 | 1,352,490 | 1,035,800 | 1,001,210 | 1,050,280 | 1,122,770 | 922,703 | 984,880 | 1,002,550 | 1,031,960 | 921,012 | 875,845 | 1,016,330 | 1,022,520 | 940,998 | 875,946 |
| Total current liabilities | US$ in thousands | 881,128 | 445,447 | 446,504 | 254,393 | 271,346 | 290,461 | 232,951 | 308,612 | 371,561 | 418,029 | 234,221 | 253,234 | 295,762 | 317,412 | 203,930 | 185,833 | 305,558 | 334,299 | 242,898 | 448,153 |
| Working capital turnover | 1.81 | 0.62 | 0.65 | 0.53 | 0.37 | 0.39 | 0.55 | 0.62 | 0.60 | 0.55 | 0.48 | 0.47 | 0.48 | 0.49 | 0.47 | 0.45 | 0.43 | 0.41 | 0.42 | 0.67 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $517,655K ÷ ($1,167,620K – $881,128K)
= 1.81
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to support its operations and revenue generation.
Based on the data provided for Interdigital Inc, we can observe fluctuations in the working capital turnover ratio over the past eight quarters. In Q4 2023, the working capital turnover ratio stood at 1.92, showing a significant improvement compared to previous quarters. This indicates that in Q4 2023, Interdigital Inc was able to generate almost twice the revenue relative to its working capital, reflecting improved efficiency in managing its working capital.
Conversely, in Q4 2022, the working capital turnover ratio was relatively lower at 0.38, suggesting that the company's efficiency in utilizing its working capital to generate revenue was weaker during that period.
Overall, the trend in Interdigital Inc's working capital turnover ratio shows variability, with some quarters exhibiting higher efficiency in working capital utilization than others. It is important for the company to maintain a consistent and high working capital turnover ratio to ensure optimal operational performance and financial health.
Peer comparison
Dec 31, 2023