ADEIA CORP (ADEA)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue (ttm) US$ in thousands 376,024 343,723 359,019 354,886 388,788 405,210 393,110 417,708 438,933 433,922 564,004 678,461 761,525 721,073 704,491 619,850
Property, plant and equipment US$ in thousands 6,278 6,473 6,704 6,784 6,971 5,437 5,013 4,556 4,550 56,727 58,096 59,251 4,936 61,265 65,963 59,211
Fixed asset turnover 59.90 53.10 53.55 52.31 55.77 74.53 78.42 91.68 96.47 7.65 9.71 11.45 154.28 11.77 10.68 10.47

December 31, 2024 calculation

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

ADEIA CORP's fixed asset turnover ratio has exhibited significant fluctuations over the past few years, indicating variations in how efficiently the company is generating revenue from its fixed assets. The ratio has ranged from a high of 154.28 in December 2021 to a low of 7.65 in September 2022.

The higher ratios in 2021 suggest that ADEIA CORP was generating more revenue relative to its investment in fixed assets during that period. However, the ratio decreased sharply in subsequent periods, indicating a potential decline in operational efficiency or changes in the utilization of fixed assets.

The downward trend continued through the end of 2024, with the ratio stabilizing around 50-60 range. This may suggest that the company's operational efficiency improved compared to the lowest points in 2022 and early 2023 but has not yet reached the levels seen in 2021.

It would be important to further investigate the reasons behind these fluctuations to assess whether the company is effectively utilizing its fixed assets to generate revenue or if there are underlying issues affecting its operational performance.