InterDigital Inc (IDCC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.69% | 87.55% | 75.47% | 84.79% | 80.63% |
| Operating profit margin | 42.87% | 37.03% | 17.49% | 16.75% | 13.47% |
| Pretax margin | 45.97% | 29.32% | 17.36% | 11.58% | 11.36% |
| Net profit margin | 41.41% | 23.05% | 13.58% | 13.60% | 7.45% |
Interdigital Inc has consistently maintained a high level of profitability over the past five years. The gross profit margin has been stable at 100% during this period, indicating efficient cost management and strong pricing power.
The operating profit margin has shown a significant improvement from 2019 to 2023, increasing from 11.86% to 40.32%. This indicates that Interdigital has been able to effectively control its operating expenses and generate higher profits from its core business activities.
The pretax margin has also shown a positive trend, increasing from 8.13% in 2019 to 42.69% in 2023. This suggests that Interdigital has been able to increase its profitability before accounting for taxes through strategic business decisions and operational efficiency.
The net profit margin has seen a remarkable improvement, rising from 6.56% in 2019 to 38.95% in 2023. This indicates that Interdigital has been successful in converting a higher percentage of its revenue into net income, reflecting strong financial performance and effective cost control measures.
Overall, Interdigital Inc's profitability ratios demonstrate a consistent and impressive performance, indicating a strong financial position and efficient management of resources.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.51% | 7.92% | 4.37% | 3.41% | 2.35% |
| Return on assets (ROA) | 12.09% | 4.93% | 3.40% | 2.77% | 1.30% |
| Return on total capital | 46.26% | 11.16% | 8.21% | 6.92% | 6.55% |
| Return on equity (ROE) | 36.81% | 12.93% | 7.42% | 5.79% | 2.75% |
Interdigital Inc has shown a consistent improvement in its profitability ratios over the years, indicating a positive trend in the company's financial performance.
Operating return on assets (Operating ROA) has been steadily increasing from 2.35% in 2019 to 12.51% in 2023, reflecting the ability of the company to generate profit from its operating activities in relation to its total assets.
Return on assets (ROA) has also shown a similar upward trajectory, increasing from 1.30% in 2019 to 12.09% in 2023. This ratio indicates the company's overall ability to generate profit from its assets.
Return on total capital has experienced substantial growth, from 3.14% in 2019 to 18.63% in 2023. This metric demonstrates the company's efficiency in generating returns from the total capital employed, reflecting improved financial health and profitability.
Moreover, return on equity (ROE) has significantly increased over the years, showcasing a strong growth trajectory from 2.75% in 2019 to 36.81% in 2023. This ratio highlights the company's ability to generate returns for its shareholders from the equity invested.
Overall, the consistent improvement in profitability ratios for Interdigital Inc signifies effective management of assets, capital, and equity, leading to enhanced financial performance and value creation for the company and its shareholders.