InterDigital Inc (IDCC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 104.37 | — | 264.87 | — |
| Days of sales outstanding (DSO) | days | 85.87 | 96.82 | 105.33 | 79.12 | 77.10 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 85.87 | 201.19 | 105.33 | 343.99 | 77.10 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 85.87 – —
= 85.87
The cash conversion cycle of InterDigital Inc has fluctuated over the years, ranging from 77.10 days at the end of 2020 to 343.99 days at the end of 2021, before decreasing to 105.33 days at the end of 2022. The cycle then increased to 201.19 days by the end of 2023 and decreased again to 85.87 days by the end of 2024.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company takes longer to convert its investments into cash, which may suggest inefficiencies in managing its working capital and operations.
InterDigital Inc's significant fluctuations in the cash conversion cycle over the years may indicate varying efficiencies in managing its working capital. The company should focus on optimizing its inventory management, accounts payable, and accounts receivable processes to improve its cash conversion cycle and overall liquidity position.
Peer comparison
Dec 31, 2024