InterDigital Inc (IDCC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 439,512 | 282,443 | 148,691 | 95,888 | 78,952 |
| Long-term debt | US$ in thousands | 15,443 | 29,019 | 607,066 | 422,745 | 367,992 |
| Total stockholders’ equity | US$ in thousands | 857,215 | 581,549 | 724,895 | 745,239 | 773,369 |
| Return on total capital | 50.36% | 46.26% | 11.16% | 8.21% | 6.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $439,512K ÷ ($15,443K + $857,215K)
= 50.36%
InterDigital Inc's return on total capital has shown a positive trend over the years, increasing from 6.92% as of December 31, 2020, to 50.36% as of December 31, 2024. This indicates that the company has been able to generate more income relative to the total capital employed in its operations. The significant improvement in return on total capital from 2020 to 2024 suggests effective capital utilization and potentially improved profitability. It is essential to further analyze the factors driving this substantial increase to assess the sustainability and efficiency of InterDigital Inc's operations and investments.
Peer comparison
Dec 31, 2024