InterDigital Inc (IDCC)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.02 | 0.05 | 0.46 | 0.36 | 0.32 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,443K ÷ ($15,443K + $857,215K)
= 0.02
The debt-to-capital ratio of InterDigital Inc has been fluctuating over the past five years. The ratio stood at 0.32 as of December 31, 2020, indicating that 32% of the company's capital structure was funded by debt. By December 31, 2021, the ratio increased to 0.36, suggesting a slight rise in the proportion of debt in the capital structure.
Subsequently, the ratio experienced a more significant increase to 0.46 by December 31, 2022, indicating that nearly half of the company's capital was financed through debt. However, there was a notable decrease in the debt-to-capital ratio to 0.05 by December 31, 2023, reflecting a substantial reduction in the reliance on debt.
By the end of December 31, 2024, the ratio dropped further to 0.02, signaling that only 2% of the company's capital was sourced from debt. This substantial decrease in the debt-to-capital ratio may suggest that InterDigital Inc has been actively reducing its debt levels relative to its capital base, which could improve its financial stability and reduce financial risk over time.
Peer comparison
Dec 31, 2024