InterDigital Inc (IDCC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 282,443 | 148,691 | 95,888 | 78,952 | 72,874 |
| Long-term debt | US$ in thousands | 29,019 | 607,066 | 422,745 | 367,992 | 350,588 |
| Total stockholders’ equity | US$ in thousands | 581,549 | 724,895 | 745,239 | 773,369 | 761,557 |
| Return on total capital | 46.26% | 11.16% | 8.21% | 6.92% | 6.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $282,443K ÷ ($29,019K + $581,549K)
= 46.26%
Interpreting the return on total capital for Interdigital Inc over the past five years reveals a positive trend in the company's efficiency in generating returns on its total invested capital. The return on total capital has shown a consistent increase from 3.14% in 2019 to 18.63% in 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders.
The significant improvement in return on total capital reflects positively on the company's operational efficiency and financial performance. It suggests that Interdigital Inc has been successful in optimizing its capital structure and deploying its capital resources in a manner that generates higher returns over time.
Overall, the trend of increasing return on total capital for Interdigital Inc signals a positive financial outlook and indicates a strong performance in generating returns on the total capital invested in the company. It implies that Interdigital Inc has been successful in enhancing shareholder value by efficiently utilizing its capital resources to generate profits.
Peer comparison
Dec 31, 2023