ADEIA CORP (ADEA)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	187,817	198,294	595,294	631,687	484,582
Payables	US$ in thousands	8,045	9,623	8,546	448	13,045
Payables turnover		23.35	20.61	69.66	1,410.02	37.15

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $187,817K ÷ $8,045K
= 23.35

The payables turnover ratio measures how efficiently ADEIA CORP is managing its accounts payable. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be beneficial in terms of maintaining good relationships and potentially negotiating better terms.

Based on the data provided, ADEIA CORP's payables turnover has fluctuated significantly over the past few years. In December 31, 2020, the payables turnover was 37.15, indicating that the company paid its suppliers approximately 37 times during that year. This increased substantially to 1,410.02 by December 31, 2021, which could suggest either a significant increase in purchases or a change in payment terms.

The ratio decreased to 69.66 by December 31, 2022, then further dropped to 20.61 by December 31, 2023, before slightly increasing to 23.35 by December 31, 2024. These fluctuations may indicate changes in the company's payment practices or in the efficiency of its accounts payable management.

Overall, it is important for ADEIA CORP to monitor its payables turnover ratio consistently to ensure that it is maintaining efficient payment practices while also effectively managing its relationships with suppliers.