InterDigital Inc (IDCC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 581,549 | 724,895 | 745,239 | 773,369 | 761,557 |
| ROE | 36.81% | 12.93% | 7.42% | 5.79% | 2.75% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $214,069K ÷ $581,549K
= 36.81%
Interdigital Inc's return on equity (ROE) has shown a consistently increasing trend over the past five years. The ROE increased significantly from 2.75% in 2019 to 36.81% in 2023, indicating a strong improvement in the company's profitability and efficiency in generating returns for its shareholders.
The substantial increase in ROE can be attributed to effective management of its assets and equity, resulting in increased profits relative to shareholders' investments. This suggests that Interdigital Inc has been successful in leveraging its equity to enhance shareholder value over the years.
The steady growth in ROE demonstrates the company's ability to generate higher returns on equity capital, reflecting positively on its financial performance and overall strength. This trend indicates that Interdigital Inc is effectively utilizing its resources to generate profits and create value for its shareholders.
Peer comparison
Dec 31, 2023