GURUFOCUS.COM » STOCK LIST » Technology » Software » InterDigital Inc (NAS:IDCC) » Definitions » EBIT

InterDigital (InterDigital) EBIT

: $279.4 Mil (TTM As of Dec. 2023)
View and export this data going back to 1990. Start your Free Trial

InterDigital's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $40.8 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $279.4 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. InterDigital's annualized ROC % for the quarter that ended in Dec. 2023 was 10.64%. InterDigital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 595.81%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. InterDigital's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 13.45%.


InterDigital EBIT Historical Data

The historical data trend for InterDigital's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

InterDigital Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.90 72.09 82.78 147.06 279.43

InterDigital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 50.25 132.45 37.76 68.38 40.83

Competitive Comparison

For the Software - Application subindustry, InterDigital's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


InterDigital EV-to-EBIT Distribution

For the Software industry and Technology sector, InterDigital's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where InterDigital's EV-to-EBIT falls into.



InterDigital EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $279.4 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


InterDigital  (NAS:IDCC) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

InterDigital's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=101.3 * ( 1 - -18.7% )/( (892.162 + 1368.204)/ 2 )
=120.2431/1130.183
=10.64 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1826.481 - 122.077 - ( 1083.919 - max(0, 445.447 - 1257.689+1083.919))
=892.162

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1770.814 - 116.114 - ( 1006.356 - max(0, 881.128 - 1167.624+1006.356))
=1368.204

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

InterDigital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=163.336/( ( (27.516 + max(-221.837, 0)) + (27.312 + max(-160.943, 0)) )/ 2 )
=163.336/( ( 27.516 + 27.312 )/ 2 )
=163.336/27.414
=595.81 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(69.572 + 0 + 28.264) - (122.077 + 167.615 + 29.981)
=-221.837

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(117.292 + 0 + 24.141) - (116.114 + 153.597 + 32.665)
=-160.943

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

InterDigital's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=279.427/2078.075
=13.45 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


InterDigital EBIT Related Terms

Thank you for viewing the detailed overview of InterDigital's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


InterDigital (InterDigital) Business Description

Traded in Other Exchanges
Address
200 Bellevue Parkway, Suite 300, Wilmington, DE, USA, 19809-3727
InterDigital Inc is a research and development company focused on wireless, visual, and related technologies. It designs and develops technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. The majority of revenue is generated from fixed-fee patent license agreements, with a smaller portion coming from variable royalty agreements. Geographically it operates in the United States, China, South Korea, Japan, Taiwan, and Europe, Out of which the majority is from the United States.
Executives
Joshua D. Schmidt officer: CLO & Corp Sec 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Rajesh Pankaj officer: Chief Technology Officer 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Eeva K. Hakoranta officer: Chief Licensing Officer 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Eric Cohen officer: Chief Strategy& Growth Officer 5220 LAS VIRGENES ROAD, CALABASAS CA 91302
Pierre-yves Lesaicherre director C/O INTERDIGITAL, INC., 200 BELLEVUE PKWY, STE 300, WILMINGTON DE 19809
Markley John D. Jr. director COLUMBIA CAPITAL, 201 NORTH UNION STREET, SUITE VA 22314
Samir Armaly director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
John A Kritzmacher director C/O GLOBAL CROSSING LIMITED, 200 PARK AVENUE, SUITE 300, FLORHAM PARK NJ 07932
Jean F Rankin director 1110 AMERICAN PARKWAY NE, ALLENTOWN PA 18109
Richard Brezski officer: Chief Accounting Officer 781 THIRD AVENUE, KING OF PRUSSIA PA 19406-1409
Derek K Aberle director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Henry Tirri officer: Chief Technology Officer 400 ATLANTIC STREET, SUITE 1500, STAMFORD CT 06901
Stewart D Hutcheson director 5887 COPLEY DRIVE, SAN DIEGO CA 92111
Joan H Gillman director C/O AIRGAIN, INC., 3611 VALLEY CENTRE DRIVE, SUITE 150, SAN DIEGO CA 92130
Lawrence Liren Chen director, officer: President and CEO 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809