ADEIA CORP (ADEA)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	376,024	343,723	359,019	354,886	388,788	405,210	393,110	417,708	438,933	433,922	564,004	678,461	761,525	721,073	704,491	619,850
Receivables	US$ in thousands	138,192	145,541	114,922	109,109	114,570	127,534	105,115	114,881	132,234	236,223	250,683	221,981	221,360	238,659	279,459	271,088
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

December 31, 2024 calculation

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

The receivables turnover ratio is a measure of how efficiently a company is managing its accounts receivables, indicating how many times a company collects its average accounts receivable balance during a specific period. A higher receivables turnover ratio signifies a shorter time taken to collect receivables, which is generally seen as a positive indicator.

Analyzing the receivables turnover of ADEIA CORP from March 31, 2021, to December 31, 2024, shows fluctuations in the ratio over time. The ratio started at 2.29 on March 31, 2021, increased steadily to reach a peak of 3.74 on June 30, 2023, indicating an improvement in the collection efficiency of receivables. However, the ratio decreased to 2.36 on September 30, 2024, showing a potential delay in collecting receivables.

Overall, ADEIA CORP's receivables turnover ratio has shown variations during the analyzed period. It is essential for the company to closely monitor and manage its accounts receivables to ensure efficient collection practices and maintain a healthy cash flow.