InterDigital Inc (IDCC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 437,076 | 693,479 | 706,282 | 473,474 | 745,491 |
| Short-term investments | US$ in thousands | 569,280 | 508,298 | 235,345 | 453,173 | 179,204 |
| Total current liabilities | US$ in thousands | 881,128 | 271,346 | 371,561 | 295,762 | 305,558 |
| Cash ratio | 1.14 | 4.43 | 2.53 | 3.13 | 3.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($437,076K
+ $569,280K)
÷ $881,128K
= 1.14
The cash ratio for Interdigital Inc has shown some fluctuations over the past five years. In 2023, the cash ratio decreased to 1.16 from 4.47 in 2022, indicating a lower level of liquidity compared to the previous year. However, despite this decrease, the cash ratio in 2023 still indicates that the company has sufficient cash and cash equivalents to cover its current liabilities.
Compared to 2021 and 2020, where the cash ratio was 2.58 and 3.18 respectively, the 2023 ratio is lower. This suggests that in 2023, Interdigital Inc may have fewer liquid assets relative to its current liabilities compared to the previous two years.
Looking back to 2019, where the cash ratio was 3.23, we can see that the 2023 ratio is also lower. This indicates that Interdigital Inc's liquidity position has weakened over the past five years.
In conclusion, while the cash ratio decreased in 2023, it still reflects a reasonable level of liquidity for Interdigital Inc to meet its short-term obligations. However, the trend of declining cash ratio over the past few years is something that investors and stakeholders may want to monitor closely for potential liquidity concerns.
Peer comparison
Dec 31, 2023