InterDigital Inc (IDCC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,835,530 | 1,770,810 | 1,900,100 | 1,628,160 | 1,616,280 |
| Total stockholders’ equity | US$ in thousands | 857,215 | 581,549 | 724,895 | 745,239 | 773,369 |
| Financial leverage ratio | 2.14 | 3.04 | 2.62 | 2.18 | 2.09 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,835,530K ÷ $857,215K
= 2.14
The financial leverage ratio of InterDigital Inc has shown a fluctuating trend over the years based on the provided data.
As of December 31, 2020, the ratio stood at 2.09, indicating that the company had $2.09 of debt for every $1 of equity. This suggests a moderate level of financial leverage at that time.
By December 31, 2021, the ratio increased to 2.18, which demonstrates a slight rise in the company's reliance on debt financing compared to the previous year.
A more significant increase was observed by December 31, 2022, with the financial leverage ratio reaching 2.62. This suggests a higher level of financial risk due to increased debt relative to equity in the company's capital structure.
The trend continued to rise by December 31, 2023, with the ratio standing at 3.04, indicating a further increase in financial leverage and signaling a potentially higher risk profile for the company.
However, by the end of December 31, 2024, the ratio decreased to 2.14, showing a decline in financial leverage compared to the previous year, which might imply a reduction in debt or an increase in equity during that period.
In conclusion, the financial leverage ratio of InterDigital Inc has shown fluctuations, indicating varying levels of debt utilization in the company's capital structure over the years. It is important for investors and stakeholders to closely monitor these changes to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024