ADEIA CORP (ADEA)

Payables turnover

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cost of revenue (ttm)	US$ in thousands	198,294	-49,777	416,114	505,253	595,295	1,064,081	668,020	648,715	631,658	516,560	527,224	541,722
Payables	US$ in thousands	9,623	10,136	15,534	4,079	8,546	25,286	14,679	11,835	448	16,081	14,352	24,474	13,045	18,829	21,242
Payables turnover		20.61	-4.91	26.79	123.87	69.66	42.08	45.51	54.81	1,409.95	32.12	36.74	22.13

December 31, 2023 calculation

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

The payables turnover ratio for ADEIA CORP has shown significant fluctuations over the past several quarters. The ratio peaked at 1,409.95 in the fourth quarter of 2021 and then dropped to -4.91 in the first quarter of 2023, indicating an abnormality where payables might have decreased or payments were made too quickly relative to purchases made.

Generally, a higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could indicate strong liquidity and efficient management of payables. Conversely, a lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or signal cash flow issues.

The significant fluctuations in ADEIA CORP's payables turnover ratio may warrant further investigation into the company's payment policies, vendor relationships, and overall financial health. It is important to monitor this ratio over time to assess the company's ability to effectively manage its accounts payable and optimize its working capital management.