InterDigital Inc (IDCC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.05 | 0.46 | 0.36 | 0.32 | 0.32 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $29,019K ÷ ($29,019K + $581,549K)
= 0.05
Interdigital Inc's debt-to-capital ratio has shown an increasing trend over the past five years, reflecting a rising level of debt relative to the company's total capital structure. The ratio increased from 0.37 in 2019 to 0.51 in 2023. This indicates that the company has been relying more on debt financing compared to its equity over the years. A higher debt-to-capital ratio may indicate increased financial risk as the company has more debt obligations to fulfill. It is worth noting that the ratio surpassed 0.5 in 2023, suggesting that more than half of the company's capital structure is funded by debt, which may raise concerns regarding the company's leverage and ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023