ADEIA CORP (ADEA)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	376,024	388,788	438,933	391,212	515,919
Receivables	US$ in thousands	138,192	114,570	132,234	221,360	248,406
Receivables turnover		2.72	3.39	3.32	1.77	2.08

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $376,024K ÷ $138,192K
= 2.72

The receivables turnover for ADEIA CORP has shown fluctuations over the past five years. From December 31, 2020, to December 31, 2021, there was a decrease in the turnover ratio from 2.08 to 1.77, indicating that the company took longer to collect its accounts receivable in 2021. However, in the subsequent years, there was a significant improvement in the collection efficiency as the turnover ratio increased to 3.32 by December 31, 2022, and further to 3.39 by December 31, 2023. This suggests that the company was able to convert its accounts receivable into cash at a quicker pace during these years.

In the most recent year, as of December 31, 2024, the receivables turnover slightly decreased to 2.72 compared to the previous year. Although there was a slight dip, the turnover ratio remained relatively high, indicating that ADEIA CORP was still efficient in collecting its outstanding receivables.

Overall, the trend in the receivables turnover for ADEIA CORP shows improvements in the collection process over the years, with a few fluctuations in between. It is essential for the company to continue monitoring and managing its accounts receivable effectively to ensure a steady cash flow and overall financial health.