InterDigital Inc (IDCC)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 237,626 | 245,296 | 214,359 | 217,344 | 119,195 | 109,804 | 114,740 | 87,282 | 70,663 | 37,337 | 17,797 | 43,553 | 38,153 | 62,010 | 53,125 | 38,457 | 31,919 | 9,848 | 8,401 | 7,697 |
| Revenue (ttm) | US$ in thousands | 517,655 | 504,255 | 483,937 | 497,549 | 401,152 | 416,818 | 445,514 | 426,114 | 407,069 | 385,797 | 330,293 | 343,605 | 336,872 | 348,243 | 333,653 | 307,944 | 307,764 | 280,929 | 290,301 | 288,591 |
| Pretax margin | 45.90% | 48.65% | 44.29% | 43.68% | 29.71% | 26.34% | 25.75% | 20.48% | 17.36% | 9.68% | 5.39% | 12.68% | 11.33% | 17.81% | 15.92% | 12.49% | 10.37% | 3.51% | 2.89% | 2.67% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $237,626K ÷ $517,655K
= 45.90%
Interpreting the pretax margin data for Interdigital Inc over the specified quarters reveals fluctuations in the company's profitability before taxes. The pretax margin, which is a key financial ratio indicating the proportion of earnings remaining after all operating expenses except for taxes have been deducted, indicates the company's efficiency in generating profits.
In Q4 2023, Interdigital Inc recorded a pretax margin of 42.69%, slightly lower than the previous quarter's impressive 47.69%. The company has demonstrated consistent profitability over the past four quarters, with Q2 and Q3 2023 showing notably strong performance, with pretax margins of 43.84% and 47.69% respectively.
Comparing the latest data to the same quarter of the previous year, there has been a substantial improvement, with the Q4 2023 pretax margin of 42.69% showing a significant increase from 29.11% in Q4 2022. This upward trend indicates enhanced operational efficiency and cost management by Interdigital Inc.
Overall, the company has shown a positive trend in pretax margins over the quarters analyzed, signaling improved profitability and effective cost controls. However, it is essential for investors and stakeholders to continue monitoring these ratios to assess the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2023