InterDigital Inc (IDCC)
Debt-to-equity 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-equity ratio | 0.05 | 0.84 | 0.57 | 0.48 | 0.46 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $29,019K ÷ $581,549K
= 0.05
Interpreting the trend in Interdigital Inc's debt-to-equity ratio over the past five years indicates a fluctuating pattern. The ratio has demonstrated an increasing trend from 0.48 in 2020 to 1.05 in 2023, reflecting a rise in the company's debt relative to its equity. This increase in the ratio suggests that Interdigital Inc has been relying more on debt to finance its operations and investments compared to its equity base.
Although the ratio has shown fluctuations over the years, it is essential to consider the underlying reasons for the changes. A higher debt-to-equity ratio can indicate potential risks associated with increased financial leverage, including higher interest payments and financial distress. Conversely, a lower ratio may imply a stronger financial position and less reliance on debt funding.
Further analysis of Interdigital Inc's financial performance, cash flow management, and investment strategies would provide additional insights into the implications of the changing debt-to-equity ratio. It is vital for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's overall financial health and risk profile effectively.
Peer comparison
Dec 31, 2023