Interdigital(Idcc) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for IDCC

Report - net profit margin

This chart shows the historical trend of net profit margin for IDCC compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', IDCC's net profit margin was 13.0%, measuring the overall profitability of the company. Industry average for Multi-Sector Companies in '2021' stood at 11.9%.
• In '2022', IDCC's net profit margin was 20.5%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2022' stood at -97.3%. Industry average declined by 109.1% from previous year.
• In '2023', IDCC's net profit margin was 39.0%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2023' stood at -75.1%. Industry average increased by 22.2% compared to previous year.
• In '2024', IDCC's net profit margin was 41.3%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2024' stood at -51.0%. Industry average increased by 24.1% compared to previous year.
Overall, IDCC's net profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.