InterDigital Inc (IDCC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 437,076 | 518,483 | 277,599 | 430,625 | 693,479 | 539,651 | 833,533 | 783,016 | 706,282 | 467,606 | 410,144 | 396,156 | 473,474 | 746,561 | 670,292 | 515,793 | 745,491 | 735,886 | 531,698 | 503,240 |
| Short-term investments | US$ in thousands | 569,280 | 565,436 | 563,124 | 520,059 | 508,298 | 323,772 | 67,076 | 116,204 | 235,345 | 433,200 | 425,759 | 488,559 | 453,173 | 172,822 | 168,953 | 265,107 | 179,204 | 211,737 | 299,461 | 289,805 |
| Receivables | US$ in thousands | 137,127 | 75,934 | 79,801 | 66,854 | 117,299 | 64,103 | 63,183 | 55,290 | 88,240 | 49,734 | 46,214 | 70,334 | 69,592 | — | — | — | 38,021 | — | — | — |
| 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 |
| Quick ratio | 1.30 | 2.60 | 2.06 | 4.00 | 4.86 | 3.19 | 4.14 | 3.09 | 2.77 | 2.27 | 3.77 | 3.77 | 3.37 | 2.90 | 4.12 | 4.20 | 3.15 | 2.83 | 3.42 | 1.77 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($437,076K
+ $569,280K
+ $137,127K)
÷ $881,128K
= 1.30
Interdigital Inc's quick ratio has shown fluctuation throughout the quarters provided. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets. A higher quick ratio indicates that the company has more liquid assets available to cover its current liabilities.
In Q4 2023, the quick ratio decreased significantly to 1.32 from the previous quarter's 2.81, suggesting a potential decrease in liquidity and ability to meet short-term obligations promptly. However, the ratio is still above 1, indicating that Interdigital Inc can cover its current liabilities with its quick assets, although with less margin of safety compared to the previous quarter.
In Q3 and Q2 2023, the quick ratio was relatively high at 2.81 and 2.64, demonstrating a strong ability to meet short-term obligations with liquid assets. This trend was also observed in Q1 2023, where the quick ratio was 4.65, indicating a robust liquidity position.
Comparing 2023 with 2022, it is evident that the quick ratio has been declining gradually. In Q4 2022, the quick ratio was 4.91, showing a significant decrease compared to Q4 2023. However, the ratio remained relatively stable throughout Q1 to Q3 2022, ranging from 3.23 to 4.61.
Overall, while there has been some variability in Interdigital Inc's quick ratio, it is essential to monitor future quarterly trends to assess the company's liquidity position and ability to meet short-term obligations effectively.
Peer comparison
Dec 31, 2023