InterDigital Inc (IDCC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 448,759 | 327,067 | 356,890 | 261,237 | 282,443 | 292,257 | 256,296 | 253,412 | 148,691 | 135,046 | 138,096 | 111,032 | 95,888 | 66,684 | 51,736 | 80,797 | 78,952 | 103,541 | 95,211 | 80,479 |
| Long-term debt | US$ in thousands | 15,443 | 18,302 | 17,687 | 28,029 | 29,019 | 485,476 | 483,917 | 607,914 | 607,066 | 605,859 | 604,245 | 424,100 | 422,745 | 421,420 | 420,598 | 419,396 | 367,992 | 363,523 | 359,119 | 354,823 |
| Total stockholders’ equity | US$ in thousands | 857,215 | 722,537 | 696,777 | 624,291 | 581,549 | 583,430 | 595,217 | 619,672 | 724,895 | 695,775 | 678,769 | 753,706 | 745,239 | 724,271 | 704,185 | 712,098 | 773,369 | 783,271 | 769,419 | 752,649 |
| Return on total capital | 51.42% | 44.15% | 49.95% | 40.05% | 46.26% | 27.34% | 23.75% | 20.64% | 11.16% | 10.38% | 10.76% | 9.43% | 8.21% | 5.82% | 4.60% | 7.14% | 6.92% | 9.03% | 8.44% | 7.27% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $448,759K ÷ ($15,443K + $857,215K)
= 51.42%
InterDigital Inc's return on total capital has shown fluctuating performance over the stated period. The ratio increased from 7.27% as of March 31, 2020, to a peak of 51.42% as of December 31, 2024, indicating a positive trend in the company's ability to generate returns relative to its total capital employed.
Noteworthy fluctuations were observed within the period, with returns peaking at 51.42% in December 2024, reflecting strong capital efficiency. The ratio showed some volatility, as seen in the substantial increase from 7.14% as of March 31, 2021, to 40.05% as of March 31, 2024, followed by a slight decline in the subsequent quarter.
The upward trend in return on total capital from March 2023 through December 2024 suggests effective capital allocation and improved operational efficiency during this period. This performance indicates that InterDigital Inc has been increasingly effective in utilizing its total capital to generate profits, which may be a result of strategic investments or operational improvements.
Overall, the company's return on total capital has displayed positive momentum, reaching a significant high of 51.42% by the end of December 2024, demonstrating strong financial performance and effective capital utilization strategies.
Peer comparison
Dec 31, 2024