InterDigital Inc (IDCC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 437,076 | 693,479 | 706,282 | 473,474 | 745,491 |
| Short-term investments | US$ in thousands | 569,280 | 508,298 | 235,345 | 453,173 | 179,204 |
| Receivables | US$ in thousands | 137,127 | 117,299 | 88,240 | 69,592 | 38,021 |
| Total current liabilities | US$ in thousands | 881,128 | 271,346 | 371,561 | 295,762 | 305,558 |
| Quick ratio | 1.30 | 4.86 | 2.77 | 3.37 | 3.15 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($437,076K
+ $569,280K
+ $137,127K)
÷ $881,128K
= 1.30
The quick ratio of Interdigital Inc has demonstrated variability over the past five years. In 2023, the quick ratio was 1.32, indicating that the company had $1.32 of liquid assets available to cover each dollar of current liabilities. This represents a decrease from the previous year, where the quick ratio was significantly higher at 4.91.
The substantial decrease from 2022 to 2023 raises concerns about Interdigital Inc's short-term liquidity position. A quick ratio above 1 is generally considered healthy, but a lower ratio could suggest potential difficulties in meeting its short-term obligations.
Comparing the 2023 ratio to earlier years, the quick ratio remains above 1. This indicates that the company has generally maintained a level of liquidity to cover its short-term liabilities, although it has fluctuated over time.
Further analysis of other financial metrics and the company's overall financial health would provide a more comprehensive understanding of Interdigital Inc's liquidity position.
Peer comparison
Dec 31, 2023