ADEIA CORP (ADEA)

Receivables 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
Revenue (ttm)	US$ in thousands	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	114,570	127,534	105,115	114,881	132,234	236,223	250,683	221,981	221,360	238,659	279,459	271,088	248,406	276,053	308,847
Receivables turnover		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, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $388,788K ÷ $114,570K
= 3.39

ADEIA CORP's receivables turnover has shown variability over the past quarters. The ratio indicates how efficiently the company is collecting payments from its customers within a certain period. A higher receivables turnover ratio is generally preferred as it signifies that the company is able to convert its outstanding receivables into cash quickly.

In the latest quarter, the receivables turnover ratio was 3.39, an improvement from the previous quarter. This suggests that ADEIA CORP was able to collect payments from its customers more effectively, turning over its accounts receivable 3.39 times during the quarter.

However, it is important to note that the ratio has fluctuated significantly over the past few quarters, ranging from a low of 1.84 to a high of 3.74. This variability could indicate inconsistent collection practices or changes in the company's customer base or credit policies.

Overall, ADEIA CORP should aim to maintain a consistent and relatively high receivables turnover ratio to ensure a healthy cash flow and efficient management of its accounts receivable. Monitoring this ratio and identifying trends can help the company improve its credit management practices and overall financial performance.