InterDigital Inc (IDCC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,230,820 | 1,167,620 | 1,344,680 | 1,050,280 | 1,002,550 |
| Total current liabilities | US$ in thousands | 725,810 | 881,128 | 271,346 | 371,561 | 295,762 |
| Current ratio | 1.70 | 1.33 | 4.96 | 2.83 | 3.39 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,230,820K ÷ $725,810K
= 1.70
The current ratio, a measure of a company's short-term liquidity, indicates InterDigital Inc's ability to cover its current liabilities with its current assets.
InterDigital Inc's current ratio has fluctuated over the past five years. As of December 31, 2020, the company's current ratio was a healthy 3.39, suggesting that it had more than enough current assets to cover its short-term obligations. However, by December 31, 2023, the current ratio had decreased significantly to 1.33, indicating a potential liquidity challenge as the company may have difficulty meeting its current liabilities with its current assets alone.
There was a slight improvement by December 31, 2024, with the current ratio rising to 1.70, but it still remains below the ideal benchmark of 2. This implies that InterDigital Inc may need to carefully manage its short-term liquidity in the coming periods to avoid potential financial difficulties.
It is important for investors and stakeholders to closely monitor InterDigital Inc's current ratio to assess its ability to meet its short-term financial obligations and to make informed decisions regarding the company's financial health and stability.
Peer comparison
Dec 31, 2024