InterDigital Inc (IDCC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,167,620 | 1,344,680 | 1,050,280 | 1,002,550 | 1,016,330 |
| Total current liabilities | US$ in thousands | 881,128 | 271,346 | 371,561 | 295,762 | 305,558 |
| Current ratio | 1.33 | 4.96 | 2.83 | 3.39 | 3.33 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,167,620K ÷ $881,128K
= 1.33
Interdigital Inc's current ratio has fluctuated over the past five years, indicating changes in its short-term liquidity position. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In 2023, the current ratio stands at 1.33, a significant decrease from the previous year's ratio of 4.96. This suggests that the company may have experienced challenges in meeting its short-term obligations with its current assets. A current ratio below 1 would indicate that the company may have difficulty covering its short-term debts.
The company's current ratio in 2022 was exceptionally high at 4.96, indicating a robust ability to cover its short-term obligations with current assets. This ratio dropped significantly in 2023, which could be a cause for concern as it may indicate a decrease in the company's liquidity position.
Comparing the current ratio over the past five years, Interdigital Inc's liquidity position was strongest in 2022 with a ratio of 4.96, while the current ratio was relatively stable between 3.33 and 3.47 in the years 2019 to 2021.
It is important to further analyze the components of current assets and current liabilities to fully understand the reasons behind the fluctuations in Interdigital Inc's current ratio. Monitoring trends in the current ratio over time can provide valuable insights into the company's short-term financial health and liquidity management.
Peer comparison
Dec 31, 2023