InterDigital Inc (IDCC)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 448,759 | 327,067 | 356,890 | 261,237 | 282,443 | 292,257 | 256,296 | 253,412 | 148,691 | 135,046 | 138,096 | 111,032 | 95,888 | 66,684 | 51,736 | 80,797 | 78,952 | 103,541 | 95,211 | 80,479 |
| Interest expense (ttm) | US$ in thousands | 45,421 | 41,992 | 43,994 | 44,652 | 44,817 | 46,961 | 41,937 | 36,068 | 29,496 | 25,242 | 23,356 | 23,750 | 25,225 | 29,347 | 33,939 | 37,244 | 40,799 | 41,531 | 42,086 | 42,022 |
| Interest coverage | 9.88 | 7.79 | 8.11 | 5.85 | 6.30 | 6.22 | 6.11 | 7.03 | 5.04 | 5.35 | 5.91 | 4.68 | 3.80 | 2.27 | 1.52 | 2.17 | 1.94 | 2.49 | 2.26 | 1.92 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $448,759K ÷ $45,421K
= 9.88
InterDigital Inc's interest coverage ratio has shown fluctuations over the periods indicated.
The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
From March 31, 2020, to December 31, 2020, the interest coverage ratio varied between 1.92 and 2.49, suggesting some volatility in the company's ability to cover its interest payments during this period.
However, from March 31, 2021, to December 31, 2024, there is a notable improvement in the interest coverage ratio. The ratio consistently increased from 2.17 in March 2021 to 9.88 in December 2024. This significant improvement indicates a stronger ability for InterDigital Inc to cover its interest expenses with its EBIT.
The upward trend in the interest coverage ratio over these periods reflects a positive sign of InterDigital Inc's improving financial health and ability to meet its interest obligations. It signifies that the company's profitability and earnings relative to its interest expense have been on an improving path, which can be reassuring for creditors and investors.
Peer comparison
Dec 31, 2024