ADEIA CORP (ADEA)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	117.16	87.90	95.61	123.83	54.73	56.42	62.97
Receivables turnover	2.72	2.36	3.12	3.25	3.39	3.18	3.74	3.64	3.32	1.84	2.25	3.06	3.44	3.02	2.52	2.29
Payables turnover	23.35	24.80	40.89	41.04	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
Working capital turnover	2.03	1.98	2.46	3.13	3.75	2.94	3.44	3.79	4.77	1.32	1.54	2.02	2.31	2.33	2.07	1.73

ADEIA CORP's activity ratios reflect its efficiency in managing its operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times the company sells and replaces its inventory within a specific period. ADEIA CORP's inventory turnover has generally been high, indicating that it effectively sells and replenishes its inventory. However, there was a notable decrease from December 2022 to March 2023, followed by an increase back to high levels by September 2023.

2. Receivables Turnover: The receivables turnover ratio shows how quickly the company collects outstanding receivables. ADEIA CORP's receivables turnover fluctuated within the analyzed period, with a peak in December 2022. The company appears to have improved its collection efficiency compared to previous periods.

3. Payables Turnover: The payables turnover ratio demonstrates how quickly the company pays its suppliers. ADEIA CORP experienced significant fluctuations in payables turnover, with a drastic increase from September 2021 to December 2021, followed by fluctuations in subsequent periods. Negative values in September 2023 indicate possible issues with payables management.

4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently the company utilizes its working capital to generate sales. ADEIA CORP's working capital turnover decreased steadily from March 2021 to September 2024, indicating a declining trend in using working capital to drive revenue.

Overall, ADEIA CORP's activity ratios suggest strengths in inventory management and receivables collection, while also highlighting potential challenges in payables management and working capital efficiency that require further analysis.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	3.12	4.15	3.82	2.95	6.67	6.47	5.80
Days of sales outstanding (DSO)	days	134.14	154.55	116.84	112.22	107.56	114.88	97.60	100.38	109.96	198.70	162.23	119.42	106.10	120.81	144.79	159.63
Number of days of payables	days	15.63	14.72	8.93	8.89	17.71	—	13.63	2.95	5.24	8.67	8.02	6.66	0.26	11.36	9.94	16.49

ADEIA CORP's Days of Inventory on Hand (DOH) shows the number of days it takes for the company to sell its inventory. The trend in the DOH has been somewhat fluctuating, starting at 5.80 days on March 31, 2021, peaking at 6.67 days on September 30, 2021 and then decreasing to 3.12 days on September 30, 2022. As of December 31, 2022, there is no data reported, indicating a possible change in reporting or inventory management practices.

Days of Sales Outstanding (DSO) represents the average number of days it takes for ADEIA CORP to collect payment after making a sale. The trend in DSO has shown variability as well, with a peak of 198.70 days on September 30, 2022. The DSO has improved over time from 159.63 days on March 31, 2021, to 134.14 days on December 31, 2024.

The Number of Days of Payables is the average number of days it takes for ADEIA CORP to pay its suppliers. The trend in payables days has been fluctuating, hitting a low of 0.26 days on December 31, 2021 and then increasing to 17.71 days on December 31, 2023. The company should consider managing its payables effectively to optimize its cash flow and relationships with suppliers.

In conclusion, the analysis of ADEIA CORP's activity ratios suggests that there have been fluctuations in its inventory management, collection of receivables, and payment to suppliers. Continuous monitoring and management of these activity ratios are essential for the company's operational efficiency and financial health.

Long-term

	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
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
Total asset turnover	0.34	0.32	0.34	0.33	0.35	0.36	0.35	0.36	0.36	0.20	0.23	0.27	0.31	0.29	0.27	0.24

The Fixed Asset Turnover of ADEIA CORP has fluctuated over the years, ranging from as low as 7.65 to as high as 154.28. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. The significant variations in this ratio suggest changes in the productivity or utilization of the company's fixed assets.

On the other hand, the Total Asset Turnover ratio has shown more stability over the years, with values ranging from 0.20 to 0.36. This ratio indicates the company's ability to generate sales relative to its total assets. A higher ratio is generally preferred as it suggests the company is generating more revenue per unit of assets.

Overall, while the Fixed Asset Turnover ratio has shown more volatility, the Total Asset Turnover ratio has remained relatively stable. It is important for ADEIA CORP to monitor these ratios continuously to ensure efficient asset utilization and revenue generation.