ADEIA CORP (ADEA)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	376,024	388,788	438,933	391,212	515,919
Property, plant and equipment	US$ in thousands	6,278	6,971	4,550	4,936	63,207
Fixed asset turnover		59.90	55.77	96.47	79.26	8.16

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $376,024K ÷ $6,278K
= 59.90

Based on the data provided, the fixed asset turnover ratio for ADEIA CORP has shown a significant increase over the years.

In December 2020, the fixed asset turnover ratio was 8.16, indicating that the company generated $8.16 in sales for every dollar invested in fixed assets.

By December 2024, the fixed asset turnover ratio had increased substantially to 59.90. This implies that for every dollar of fixed assets invested, the company generated $59.90 in sales.

The steady increase in the fixed asset turnover ratio over the years suggests that ADEIA CORP has been more efficient in utilizing its fixed assets to generate sales. This improvement may be attributed to better asset management, operational efficiency, or increased productivity.

A higher fixed asset turnover ratio generally indicates that a company is efficiently using its fixed assets to generate revenue. However, it is essential to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.