InterDigital Inc (IDCC)

[FISH21049]

I don't follow your comparison of TOTAL LIABILITIES and SHAREHOLDER EQUITY to per share basis. Please help this retired Chief Financial Officer out.

You stated

Bottom line on a per share basis TOTAL LIABILITIES AND SHAREHOLDERS EQUITY has gone from $15.18/share in 1st QTR 2009 to $35.74/share in 2nd QTR 2014

If the company borrowed $50 billion, the 'per share basis would increase substantially, but the shareholder value would still remain the same since increasing an asset (cash) increases a liability (borrowed funds) and has no impact on what the company's per share 'value' is.

Looking at it another way, the $50 billion borrowing might be window dressing only to increase the balance sheet totals, yet the value of the company hasn't changed.

IF, HOWEVER, you compared the calculation of shareholder equity to number of shares, you would be more in line with determining what the value of the company has increased on its books.

You can then adjust for dividends, special dividends, etc. paid out to determine true 'shareholder value' had not the dividends been paid out and were left in retained earnings or undivided profits.

Lastly, you would compare shareholder value per books to stock market share price to determine what the 'market' is figuring a value of the company.

LINK TO CALCULATING SHAREHOLDER EQUITY:
http://www.wikihow.com/Calculate-Shareholders%27-Equity

Just trying to figure out what you are saying here.

JMHO