ADEIA CORP (ADEA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	198,294	595,294	631,687	484,582
Payables	US$ in thousands	9,623	8,546	448	13,045
Payables turnover		20.61	69.66	1,410.02	37.15

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $198,294K ÷ $9,623K
= 20.61

The payables turnover ratio for ADEIA CORP has fluctuated significantly over the past four years. In 2023, the payables turnover ratio was 20.61, indicating that the company took approximately 20.61 days to pay its suppliers on average. This represents a decrease from the previous year when the ratio was 69.66.

In 2021, the payables turnover ratio was exceptionally high at 1,410.02, suggesting that the company paid its suppliers multiple times within the year, potentially indicating efficient management of payables. However, this may also raise questions about the company's vendor relationships or cash flow management.

In 2020, the payables turnover ratio was 37.15, showing a more moderate payment period compared to 2021 but still significantly higher than 2023. Overall, the fluctuation in payables turnover ratios over the years may indicate changes in the company's payment terms, cash flow management, or vendor relationships that have impacted its ability to efficiently manage payables.