InterDigital (InterDigital) Interest Coverage

: 3.20 (As of Dec. 2023)

View and export this data going back to 1990. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. InterDigital's Operating Income for the three months ended in Dec. 2023 was $25.3 Mil. InterDigital's Interest Expense for the three months ended in Dec. 2023 was $-7.9 Mil. InterDigital's interest coverage for the quarter that ended in Dec. 2023 was 3.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for InterDigital's Interest Coverage or its related term are showing as below:

IDCC' s Interest Coverage Range Over the Past 10 Years
Min: 0.92 Med: 5.08 Max: 20.7
Current: 4.94

IDCC's Interest Coverage is ranked worse than
78.15% of 1602 companies
in the Software industry
Industry Median: 29.54 vs IDCC: 4.94

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

InterDigital Interest Coverage Historical Data

The historical data trend for InterDigital's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

InterDigital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.92

1.35

3.93

5.21

4.94

InterDigital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.84	9.87	1.93	4.23	3.20

Competitive Comparison

For the Software - Application subindustry, InterDigital's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Software industry and Technology sector, InterDigital's Interest Coverage distribution charts can be found below:

* The bar in red indicates where InterDigital's Interest Coverage falls into.

InterDigital Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

InterDigital's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, InterDigital's Interest Expense was $-44.8 Mil. Its Operating Income was $221.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $46.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	221.615	/	-44.817
	=	4.94

InterDigital's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, InterDigital's Interest Expense was $-7.9 Mil. Its Operating Income was $25.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $46.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	25.325	/	-7.906
	=	3.20

The higher the ratio, the stronger the company's Financial Strength is.

InterDigital (NAS:IDCC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

InterDigital Interest Coverage Related Terms

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

InterDigital (InterDigital) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

IDI:Germany IDI:Germany

Address

200 Bellevue Parkway, Suite 300, Wilmington, DE, USA, 19809-3727

Website

https://www.interdigital.com

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