InterDigital Inc (IDCC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.79% | 89.69% | 87.55% | 75.47% | 84.79% |
| Operating profit margin | 50.44% | 42.87% | 37.03% | 17.49% | 16.75% |
| Pretax margin | 49.28% | 45.97% | 29.32% | 17.36% | 11.58% |
| Net profit margin | 41.16% | 41.41% | 23.05% | 13.58% | 13.60% |
InterDigital Inc's profitability ratios depict a positive trend over the years, reflecting strong operational efficiency and increasing profitability.
- Gross profit margin consistently improved from 84.79% in 2020 to 92.79% in 2024, indicating the company's ability to effectively control production costs and generate higher margins on its products or services.
- Operating profit margin also displayed a steady upward trajectory, rising from 16.75% in 2020 to 50.44% in 2024, showcasing the company's effective management of operating expenses and increased operating efficiency.
- Pretax margin exhibited significant growth, surging from 11.58% in 2020 to 49.28% in 2024, reflecting InterDigital Inc's enhanced operational performance and more efficient utilization of pre-tax earnings.
- Net profit margin showed a substantial increase, climbing from 13.60% in 2020 to 41.16% in 2024, indicating the company's ability to convert a higher percentage of revenue into net income, ultimately resulting in improved overall profitability.
Overall, the improving trend in InterDigital Inc's profitability ratios signifies the company's enhanced operational effectiveness and financial performance, indicating a positive outlook for its future profitability and continued success in the market.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.94% | 12.51% | 7.92% | 4.37% | 3.41% |
| Return on assets (ROA) | 19.54% | 12.09% | 4.93% | 3.40% | 2.77% |
| Return on total capital | 50.36% | 46.26% | 11.16% | 8.21% | 6.92% |
| Return on equity (ROE) | 41.83% | 36.81% | 12.93% | 7.42% | 5.79% |
InterDigital Inc has shown a positive trend in profitability ratios over the years.
- Operating return on assets (Operating ROA) has increased consistently from 3.41% in December 2020 to 23.94% in December 2024, indicating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) has also shown growth from 2.77% in December 2020 to 19.54% in December 2024, indicating improving efficiency in generating profits from its assets over time.
- Return on total capital has exhibited substantial growth, increasing from 6.92% in December 2020 to 50.36% in December 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has shown significant improvement, rising from 5.79% in December 2020 to 41.83% in December 2024. This indicates InterDigital Inc's efficiency in generating profits from shareholders' equity.
Overall, the increasing trend in these profitability ratios demonstrates InterDigital Inc's improving financial performance and effective utilization of its assets and capital to generate returns for its stakeholders.