InterDigital Inc (IDCC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 527,360 | 437,076 | 693,479 | 706,282 | 473,474 |
| Short-term investments | US$ in thousands | 430,848 | 569,280 | 508,298 | 235,345 | 453,173 |
| Receivables | US$ in thousands | 204,993 | 137,127 | 117,299 | 88,240 | 69,592 |
| Total current liabilities | US$ in thousands | 725,810 | 881,128 | 271,346 | 371,561 | 295,762 |
| Quick ratio | 1.60 | 1.30 | 4.86 | 2.77 | 3.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($527,360K
+ $430,848K
+ $204,993K)
÷ $725,810K
= 1.60
The quick ratio of InterDigital Inc has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 3.37, indicating a strong ability to meet its short-term obligations using only its most liquid assets. The ratio decreased to 2.77 by December 31, 2021, but still remained above the desirable threshold of 1.
By December 31, 2022, the quick ratio significantly improved to 4.86, suggesting a robust liquidity position. However, there was a notable decline in the quick ratio to 1.30 by December 31, 2023, raising concerns about the company's short-term liquidity.
The quick ratio rebounded slightly to 1.60 as of December 31, 2024, but it remains below the ideal ratio of 1, indicating that InterDigital Inc may have some difficulty in meeting its short-term obligations using only its quick assets. It is important for the company to monitor its liquidity position closely and take appropriate measures to ensure it can meet its short-term financial commitments efficiently.
Peer comparison
Dec 31, 2024