InterDigital Inc (IDCC)

Cash ratio

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
Cash and cash equivalents US$ in thousands 527,360 401,090 299,762 440,242 437,076 518,483 277,599 430,625 693,479 539,651 833,533 783,016 706,282 467,606 410,144 396,156 473,474 746,561 670,292 515,793
Short-term investments US$ in thousands 430,848 412,120 460,581 544,393 569,280 565,436 563,124 520,059 508,298 323,772 67,076 116,204 235,345 433,200 425,759 488,559 453,173 172,822 168,953 265,107
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
Cash ratio 1.32 1.14 1.09 1.09 1.14 2.43 1.88 3.74 4.43 2.97 3.87 2.91 2.53 2.15 3.57 3.49 3.13 2.90 4.12 4.20

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, a liquidity ratio that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has fluctuated over the past few years.

The cash ratio stood at 4.20 as of March 31, 2020, indicating that the company had $4.20 of cash and cash equivalents for every $1 of current liabilities. Over the following quarters, the cash ratio remained relatively high, hovering around 3 to 4, suggesting a strong liquidity position.

However, in the second half of 2021 and going into 2022, the cash ratio declined, reaching a low point of 1.14 as of December 31, 2023. This could indicate a decrease in the company's ability to cover its short-term obligations solely with cash on hand.

By June 30, 2024, the cash ratio had slightly improved to 1.32, suggesting a partial recovery in the company's liquidity position. It would be important for InterDigital Inc to closely monitor its cash levels and manage its short-term liabilities effectively to ensure sufficient liquidity to meet its financial obligations.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash ratio
InterDigital Inc
IDCC
1.32
Dolby Laboratories
DLB
1.15
Marathon Digital Holdings Inc
MARA
21.92