InterDigital Inc (IDCC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.02 | 0.02 | 0.02 | 0.04 | 0.05 | 0.45 | 0.45 | 0.50 | 0.46 | 0.47 | 0.47 | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.32 | 0.32 | 0.32 | 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
InterDigital Inc's debt-to-capital ratio has shown stability around the 0.32 to 0.37 range from March 31, 2020, to September 30, 2021. However, there was an increase in the ratio to 0.47 by June 30, 2022, and it further increased to 0.50 by March 31, 2023. This indicates a significant rise in the proportion of debt to the total capital of the company during this period.
Subsequently, there was a slight decrease in the ratio to 0.45 by June 30, 2023, which was maintained until September 30, 2023. Surprisingly, there was a drastic drop in the debt-to-capital ratio to 0.05 by December 31, 2023, and further declined to 0.04 by March 31, 2024, and to 0.02 by June 30, 2024, where it remained until December 31, 2024.
The sudden decrease in the debt-to-capital ratio from late 2023 suggests that InterDigital Inc may have paid off a significant portion of its debt or successfully raised additional capital during this period, leading to a more favorable financial position with lower debt relative to its total capital. It is important for stakeholders to continue monitoring the company's debt management practices to ensure long-term financial stability and growth.
Peer comparison
Dec 31, 2024