InterDigital Inc (IDCC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 237,626 | 119,195 | 70,663 | 38,153 | 31,919 |
| Revenue | US$ in thousands | 516,955 | 406,489 | 407,069 | 329,455 | 280,969 |
| Pretax margin | 45.97% | 29.32% | 17.36% | 11.58% | 11.36% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $237,626K ÷ $516,955K
= 45.97%
Interdigital Inc's pretax margin has demonstrated a consistent upward trend over the past five years, indicating improving profitability before taxes. The company's pretax margin increased from 8.13% in 2019 to 42.69% in 2023, reflecting a significant enhancement in operational efficiency and cost management. This upward trajectory suggests that Interdigital has been successful in generating higher profits relative to its total revenue, which bodes well for its financial performance and overall business health. The substantial increase in pretax margin from 2022 to 2023 also highlights the company's ability to efficiently control expenses and optimize its revenue streams. Overall, Interdigital's improving pretax margin signals positive momentum and enhanced profitability in recent years.
Peer comparison
Dec 31, 2023