InterDigital Inc (IDCC)

InterDigital Inc's solvency ratios have shown varying trends over the past five years. The Debt-to-assets ratio has increased from 0.23 in 2020 to 0.26 in 2021, further rising to 0.32 in 2022. However, there was a significant decrease in 2023 to 0.02, followed by a further decrease to 0.01 in 2024. This indicates that the company's level of debt relative to its total assets has been fluctuating.

Similarly, the Debt-to-capital ratio has followed a similar pattern, increasing from 0.32 in 2020 to 0.36 in 2021, then rising to 0.46 in 2022. However, there was a sharp decline to 0.05 in 2023, followed by a further decrease to 0.02 in 2024. This ratio indicates the proportion of debt in the company's capital structure, reflecting changes in how the company finances its operations.

The Debt-to-equity ratio has displayed a similar trend, increasing from 0.48 in 2020 to 0.57 in 2021, and then significantly rising to 0.84 in 2022. However, like the other ratios, there was a notable decrease to 0.05 in 2023, followed by a further drop to 0.02 in 2024. This ratio highlights the extent to which the company is leveraged with debt compared to equity.

Lastly, the Financial leverage ratio has also shown fluctuation, increasing from 2.09 in 2020 to 2.18 in 2021, then rising to 2.62 in 2022. There was a notable jump in 2023 to 3.04, followed by a decrease to 2.14 in 2024. This ratio signifies the proportion of the company's assets that are financed by debt, indicating changes in the company's financial risk and leverage over time.

Overall, InterDigital Inc's solvency ratios suggest that the company has experienced varying levels of leverage and debt relative to its assets, capital, and equity over the past five years, reflecting changing financial strategies and risk profiles.

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Coverage ratios

Based on the provided data, the interest coverage ratio of InterDigital Inc has been improving consistently over the years. In December 31, 2020, the interest coverage was 1.94, indicating that the company's operating income was nearly sufficient to cover its interest expenses.

By December 31, 2021, the interest coverage ratio improved significantly to 3.80, showing that the company's ability to cover its interest payments had strengthened. This positive trend continued into December 31, 2022, with the interest coverage ratio increasing to 5.04, indicating stronger financial health.

In December 31, 2023, the interest coverage ratio further improved to 6.30, reflecting an even healthier financial position for InterDigital Inc. Finally, in December 31, 2024, the interest coverage ratio jumped significantly to 199.78, which suggests that the company's operating income is substantially higher than its interest expenses.

Overall, the trend in InterDigital Inc's interest coverage ratio demonstrates a positive financial trajectory, signaling that the company is effectively managing its interest obligations and operating profitably.