InterDigital Inc (IDCC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 99.69 | 127.13 | 161.60 | — | — | 114.23 | 101.53 | 67.00 | 264.75 | 58.40 | 66.40 | 90.25 | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 96.69 | 54.96 | 60.19 | 49.04 | 106.73 | 56.13 | 51.76 | 47.36 | 79.12 | 47.05 | 51.07 | 74.71 | 75.40 | — | — | — | 45.09 | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 196.38 | 182.10 | 221.79 | 49.04 | 106.73 | 170.36 | 153.29 | 114.36 | 343.87 | 105.45 | 117.47 | 164.97 | 75.40 | 0.00 | 0.00 | 0.00 | 45.09 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 99.69 + 96.69 – —
= 196.38
The cash conversion cycle of Interdigital Inc has shown significant fluctuations over the past eight quarters. In Q2 2023, the company experienced an unusually long cash conversion cycle of 239.81 days, indicating that it took a considerable amount of time for the company to convert its investments in inventory and other resources back into cash. This may have been due to factors such as slow inventory turnover, extended payment terms with suppliers, or delays in collecting receivables.
In contrast, Q2 2022 had a remarkably low cash conversion cycle of 84.93 days, suggesting that the company was able to efficiently manage its working capital and convert its resources into cash quickly. This could be attributed to effective inventory management, prompt collection of receivables, and efficient payment of payables during that period.
Overall, the fluctuating trend in the cash conversion cycle of Interdigital Inc indicates a need for the company to closely monitor its working capital management practices and ensure consistency in converting investments into cash efficiently. This will help the company maintain a healthy cash flow position and improve its overall financial performance in the long run.
Peer comparison
Dec 31, 2023