InterDigital Inc (IDCC)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,167,620 | 1,257,690 | 1,192,150 | 1,196,410 | 1,344,680 | 1,352,490 | 1,035,800 | 1,001,210 | 1,050,280 | 1,122,770 | 922,703 | 984,880 | 1,002,550 | 1,031,960 | 921,012 | 875,845 | 1,016,330 | 1,022,520 | 940,998 | 875,946 |
| Total current liabilities | US$ in thousands | 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 | 305,558 | 334,299 | 242,898 | 448,153 |
| Current ratio | 1.33 | 2.82 | 2.67 | 4.70 | 4.96 | 4.66 | 4.45 | 3.24 | 2.83 | 2.69 | 3.94 | 3.89 | 3.39 | 3.25 | 4.52 | 4.71 | 3.33 | 3.06 | 3.87 | 1.95 |
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 exhibited fluctuations over the past eight quarters, indicating changes in its short-term liquidity position. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, was notably lower in Q4 2023 compared to the previous quarter. This decrease may suggest a potential strain on the company's liquidity in the most recent period.
However, it is essential to note that while the current ratio dropped significantly in Q4 2023, it remained above 1, indicating that Interdigital Inc still has sufficient current assets to cover its current liabilities. Moreover, the current ratio has generally been strong over the past two years, consistently above 3 since Q1 2022, which indicates a healthy liquidity position and the ability to meet short-term obligations.
Overall, while the recent decrease in the current ratio raises some concerns about liquidity in the most recent quarter, the historical trend of consistently high current ratios suggests that Interdigital Inc has maintained a robust liquidity position in the past. Further analysis of the components of current assets and liabilities may provide additional insights into the company's short-term financial health.
Peer comparison
Dec 31, 2023