InterDigital Inc (IDCC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 857,024 | 711,188 | 709,932 | 575,889 | 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 |
| Total current assets | US$ in thousands | 1,230,820 | 1,153,740 | 1,057,120 | 1,215,440 | 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 |
| Total current liabilities | US$ in thousands | 725,810 | 711,771 | 699,347 | 903,819 | 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 |
| Working capital turnover | 1.70 | 1.61 | 1.98 | 1.85 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $857,024K ÷ ($1,230,820K – $725,810K)
= 1.70
InterDigital Inc's working capital turnover has shown fluctuations over the periods provided. The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently using its working capital to support sales.
InterDigital's working capital turnover ratio ranged from 0.45 to 1.98 over the periods listed. The ratio peaked at 1.98 on June 30, 2024, indicating a significant increase in the efficiency of working capital utilization to generate sales. This could suggest that InterDigital effectively managed its working capital to support an increase in sales during that period.
However, the ratio decreased to 0.37 on December 31, 2022, and then gradually increased again over the subsequent periods. The sharp decline in the ratio on December 31, 2022, may indicate inefficiency in working capital management during that period.
Overall, InterDigital's working capital turnover ratio has shown variability, with fluctuations suggesting changes in the efficiency of working capital utilization over time. It is important for the company to consistently monitor and manage its working capital effectively to support its sales operations and overall financial health.
Peer comparison
Dec 31, 2024