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