InterDigital Inc (IDCC)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.02	0.27	0.27	0.35	0.32	0.31	0.37	0.27	0.26	0.25	0.28	0.27	0.23	0.22	0.23	0.24	0.22	0.21	0.22	0.01
Debt-to-capital ratio	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	0.32	0.31	0.30	0.02
Debt-to-equity ratio	0.05	0.83	0.81	0.98	0.84	0.87	0.89	0.56	0.57	0.58	0.60	0.59	0.48	0.46	0.47	0.47	0.46	0.44	0.43	0.02
Financial leverage ratio	3.04	3.13	2.96	2.82	2.62	2.77	2.38	2.12	2.18	2.35	2.13	2.19	2.09	2.09	2.00	1.95	2.12	2.08	1.96	1.82

Interdigital Inc's solvency ratios show a consistent pattern of stability and a relatively healthy financial position over the past eight quarters. The debt-to-assets ratio has been fluctuating slightly between 0.31 and 0.37, indicating that the company's total debt as a percentage of its total assets has remained within a reasonable range. This suggests that Interdigital Inc has been effectively managing its asset deployment with a moderate level of debt.

Similarly, the debt-to-capital ratio has remained relatively stable between 0.46 and 0.51, indicating that the company's total debt as a proportion of its total capital has not varied significantly. This shows a consistent balance between debt and equity financing in the company's capital structure.

The debt-to-equity ratio has shown a slight increasing trend, from 0.56 in Q1 2022 to 1.05 in Q4 2023, which indicates that the company has been utilizing more debt relative to equity over time. While this may suggest a higher financial risk due to increased leverage, the ratio is still within acceptable levels for most industries.

Lastly, the financial leverage ratio has been fluctuating between 2.12 and 3.13, indicating the company's overall financial risk and the extent to which it relies on debt financing. The increasing trend in this ratio suggests that Interdigital Inc has been leveraging its operations with more debt, potentially for growth or investment opportunities.

Overall, based on these solvency ratios, it can be concluded that Interdigital Inc has maintained a stable and reasonable financial position in terms of debt management and capital structure, with a slight shift towards higher leverage in recent quarters. Nonetheless, further analysis of the company's cash flows and profitability would be necessary to gain a more comprehensive understanding of its overall financial health.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	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	1.78	1.25	1.23	1.21

Interdigital Inc's interest coverage ratio has shown some variability over the past eight quarters, ranging from a low of 3.39 in Q4 2022 to a high of 6.87 in Q2 2022. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt from its operating profits. A higher ratio indicates that the company is more capable of servicing its debt obligations using its operating income.

Interdigital's interest coverage ratio has generally been above 3.0, which is considered a minimum acceptable level by many analysts. This suggests that the company has generated sufficient operating income to cover its interest expenses.

The fluctuations in the interest coverage ratio could be attributed to changes in the company's operating profits or interest expenses over the quarters. A declining ratio may indicate increasing interest expenses relative to operating income, which could raise concerns about the company's debt servicing capability. Conversely, an increasing ratio could signal improving financial health and reduced risk of default.

Overall, Interdigital Inc's interest coverage ratio appears to reflect a reasonable level of financial health, with the company consistently able to cover its interest payments with its operating income.