ADEIA CORP (ADEA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		2.72	3.39	3.32	1.77	2.08
DSO	days	134.14	107.56	109.96	206.53	175.74

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.72
= 134.14

Based on the data provided, ADEIA CORP's Days Sales Outstanding (DSO) has exhibited fluctuations over the past five years. The DSO was 175.74 days as of December 31, 2020, increasing to 206.53 days by December 31, 2021. However, the trend reversed in the following years, with DSO decreasing significantly to 109.96 days as of December 31, 2022, and further to 107.56 days by December 31, 2023.

This improvement indicates that ADEIA CORP has been more efficient in collecting its accounts receivable, possibly due to better credit control or collection practices. However, there was a slight increase in DSO to 134.14 days by December 31, 2024, which may warrant further investigation to understand the underlying reasons for this change.

Overall, the declining trend in DSO from 2020 to 2023 reflects improved liquidity and effectiveness in managing receivables. However, the uptick in 2024 suggests a potential need for ADEIA CORP to monitor its receivables management closely to maintain a healthy cash flow position.