InterDigital Inc (IDCC)

Solvency ratios

	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
Debt-to-assets ratio	0.01	0.01	0.01	0.02	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
Debt-to-capital ratio	0.02	0.02	0.02	0.04	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
Debt-to-equity ratio	0.02	0.03	0.03	0.04	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
Financial leverage ratio	2.14	2.39	2.35	2.89	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

InterDigital Inc's solvency ratios show how the company is managing its debt in relation to its assets, capital, and equity. Looking at the trend over the years, the Debt-to-assets ratio has been relatively stable around 0.2 to 0.3 range, but there was a sudden drop to 0.01 by the end of 2024, indicating a significant reduction in debt in relation to its assets.

The Debt-to-capital ratio, which measures a company's financial leverage, has shown fluctuations but generally increased from 0.32 in March 2020 to around 0.02 by the end of 2024. This indicates that the company has been reducing its reliance on debt financing compared to its total capital base.

The Debt-to-equity ratio, reflecting the proportion of debt and equity financing, has fluctuated significantly, reaching a peak of 0.98 in March 2023 before dropping to 0.02 by the end of December 2024. This suggests that InterDigital Inc has been actively reducing its debt levels relative to equity in recent years.

The Financial leverage ratio, measuring the extent of the company's financial leverage, has shown an increasing trend from around 2.00 in June 2020 to 2.39 by September 2024, indicating an overall increase in financial risk for the company.

Overall, the trend in InterDigital Inc's solvency ratios suggests a strategic effort in reducing debt levels and improving overall financial stability and flexibility.

Coverage ratios

	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
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

InterDigital Inc's interest coverage ratio has shown fluctuations over the periods under review. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

From March 31, 2020, to December 31, 2020, the interest coverage ratio ranged from 1.92 to 2.49, indicating a relatively low but stable coverage of interest expenses. However, a notable increase was observed from March 31, 2021, to March 31, 2024, with the ratio consistently trending upwards to 9.88 by December 31, 2024.

The improving trend in the interest coverage ratio reflects a stronger ability of InterDigital Inc to cover its interest payments with its operating earnings. A higher interest coverage ratio suggests lower financial risk and greater financial stability for the company.

Overall, the interest coverage ratio for InterDigital Inc has shown positive improvement over the years, indicating a healthier financial position in terms of its ability to meet interest obligations.