InterDigital Inc (IDCC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 214,069 | 93,693 | 55,295 | 44,801 | 20,928 |
| Total assets | US$ in thousands | 1,770,810 | 1,900,100 | 1,628,160 | 1,616,280 | 1,612,080 |
| ROA | 12.09% | 4.93% | 3.40% | 2.77% | 1.30% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $214,069K ÷ $1,770,810K
= 12.09%
Interdigital Inc's return on assets (ROA) has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate earnings relative to its total assets. The ROA has significantly increased from 1.30% in 2019 to 12.09% in 2023, reflecting a steady growth in profitability and efficiency in asset utilization.
The company's ROA performance in 2023 outperformed the previous years, reaching its highest level during the period. This suggests that Interdigital Inc has been effectively managing its assets to generate higher returns for its shareholders. The substantial increase in ROA from 2022 to 2023 indicates a notable improvement in operational efficiency and profitability.
Overall, the upward trend in Interdigital Inc's ROA signifies a positive financial performance and effective management of assets, which bodes well for the company's profitability and growth prospects. It demonstrates a strengthening financial position and a solid foundation for future business operations and investments.
Peer comparison
Dec 31, 2023