ADEIA CORP (ADEA)

Fixed asset turnover

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

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $388,788K ÷ $6,971K
= 55.77

The fixed asset turnover of ADEIA CORP has shown fluctuations over the past four years. The ratio was 8.16 in 2020, indicating that the company generated $8.16 in sales for each dollar invested in fixed assets. This was followed by a significant increase to 79.26 in 2021, suggesting a more efficient utilization of fixed assets to generate sales revenue.

In 2022, the fixed asset turnover further improved to 96.47, reaching its peak during this period, reflecting a substantial increase in sales relative to the investment in fixed assets. However, in 2023, the ratio decreased to 55.77, indicating a slight decline in efficiency in generating sales from fixed assets compared to the previous year.

Overall, ADEIA CORP has shown varying levels of efficiency in utilizing its fixed assets to generate sales over the past four years, with notable improvements in 2021 and 2022. Further analysis of the company's operational and strategic factors may be required to understand the reasons behind these fluctuations and to assess the sustainability of their fixed asset turnover ratio.