InterDigital Inc (IDCC)
Debt-to-equity 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-equity ratio | 0.02 | 0.05 | 0.84 | 0.57 | 0.48 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $15,443K ÷ $857,215K
= 0.02
InterDigital Inc's debt-to-equity ratio has shown fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.48, indicating that the company had a moderate level of debt relative to its equity. By December 31, 2021, the ratio had increased to 0.57, suggesting a slight rise in the proportion of debt compared to equity.
In the following year, by December 31, 2022, the debt-to-equity ratio rose notably to 0.84, revealing a significant increase in the company's debt relative to equity. This could imply a higher level of financial leverage and potential risk.
However, the ratio experienced a sharp decline by December 31, 2023, dropping to 0.05. Such a low ratio could indicate that InterDigital Inc had very little debt compared to its equity during that period, potentially signaling a conservative financial strategy or strong financial position.
By the end of December 31, 2024, the debt-to-equity ratio decreased even further to 0.02, suggesting an even lower level of debt relative to equity. This could indicate that the company may have focused on reducing its debt obligations or had a substantial increase in equity.
Overall, fluctuations in InterDigital Inc's debt-to-equity ratio over the five-year period reflect varying levels of debt and equity utilization, which can offer insights into the company's financial structure, risk profile, and capital management strategies.
Peer comparison
Dec 31, 2024