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InterDigital's Operating Income for the three months ended in Dec. 2023 was $25.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $221.6 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. InterDigital's Operating Income for the three months ended in Dec. 2023 was $25.3 Mil. InterDigital's Revenue for the three months ended in Dec. 2023 was $105.5 Mil. Therefore, InterDigital's Operating Margin % for the quarter that ended in Dec. 2023 was 24.00%.
Good Sign:
InterDigital Inc operating margin is expanding. Margin expansion is usually a good sign.
InterDigital's 5-Year average Growth Rate for Operating Margin % was 22.00% per year.
Operating Income or EBIT 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%.
The historical data trend for InterDigital's Operating Income 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.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income 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 $221.6 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) Operating Income Explanation
1. Operating Income or EBIT 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. Operating Income is also linked to Operating Margin %:
InterDigital's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:
Operating Margin % | = | Operating Income (Q: Dec. 2023 ) | / | Revenue (Q: Dec. 2023 ) |
= | 25.325 | / | 105.518 | |
= | 24.00 % |
* 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.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of InterDigital's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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