InterDigital Inc (IDCC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 429,416 | 237,626 | 119,195 | 70,663 | 38,153 |
| Revenue | US$ in thousands | 871,346 | 516,955 | 406,489 | 407,069 | 329,455 |
| Pretax margin | 49.28% | 45.97% | 29.32% | 17.36% | 11.58% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $429,416K ÷ $871,346K
= 49.28%
The pretax margin of InterDigital Inc has exhibited a positive trend over the past five years, increasing from 11.58% in December 2020 to 49.28% by December 2024. This indicates a consistent improvement in the company's ability to generate profits before taxes relative to its revenue.
The significant growth in pretax margin from 2020 to 2024, reaching almost 50%, reflects InterDigital's effective cost management and operational efficiency during this period. Higher pretax margins suggest that the company is managing its operating expenses and cost of goods sold effectively, thereby increasing profitability.
The upward trajectory of the pretax margin demonstrates the company's strong financial performance and potentially increasing profitability over the years. It may signify enhanced strategic decision-making, stronger revenue generation, or improved operational efficiencies within InterDigital Inc.
Overall, the pretax margin analysis highlights InterDigital's ability to translate its revenue into higher profits before accounting for tax expenses, showcasing a positive financial trajectory and efficient management of resources.
Peer comparison
Dec 31, 2024