InterDigital Inc (IDCC)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 72,874 | 48,867 | 45,539 | 43,888 |
| Long-term debt | US$ in thousands | 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 | 350,588 | 346,397 | 342,417 | 19,061 |
| Total stockholders’ equity | US$ in thousands | 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 | 761,557 | 782,106 | 788,898 | 812,806 |
| Return on total capital | 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% | 6.55% | 4.33% | 4.03% | 5.28% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $282,443K ÷ ($29,019K + $581,549K)
= 46.26%
Interdigital Inc's return on total capital has shown an improving trend over the past eight quarters, with the latest figure reaching 18.63% in Q4 2023, marking a significant increase from 7.50% in Q4 2022. The company's return on total capital has consistently been above 10% since Q2 2022, indicating a strong ability to generate returns from the total capital employed in its operations. The increasing trend in return on total capital signifies efficient utilization of both equity and debt financing to generate profits. This improvement reflects positively on Interdigital Inc's profitability and operational efficiency, suggesting a favorable outlook for the company's financial performance.
Peer comparison
Dec 31, 2023