InterDigital Inc (IDCC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 527,360 | 437,076 | 693,479 | 706,282 | 473,474 |
| Short-term investments | US$ in thousands | 430,848 | 569,280 | 508,298 | 235,345 | 453,173 |
| Total current liabilities | US$ in thousands | 725,810 | 881,128 | 271,346 | 371,561 | 295,762 |
| Cash ratio | 1.32 | 1.14 | 4.43 | 2.53 | 3.13 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($527,360K
+ $430,848K)
÷ $725,810K
= 1.32
InterDigital Inc's cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown some fluctuations over the past five years. In December 2020, the cash ratio stood at a healthy 3.13, indicating that the company had more than enough cash on hand to meet its short-term obligations.
However, by December 2021, the ratio decreased to 2.53, suggesting a slight decrease in the company's ability to cover its short-term liabilities solely with cash. The ratio then significantly improved to 4.43 by December 2022, indicating a strengthened liquidity position.
The trend reversed in the following years, with the cash ratio dropping to 1.14 by December 2023 and further to 1.32 by December 2024. These values suggest a decrease in the company's ability to cover its short-term obligations with cash alone, signaling a potential liquidity challenge.
Overall, while InterDigital Inc has experienced fluctuations in its cash ratio over the years, it is important for the company to closely monitor its liquidity position to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024