ADEIA CORP (ADEA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	388,788	438,933	391,212	515,919
Total current assets	US$ in thousands	205,842	258,713	519,474	546,304
Total current liabilities	US$ in thousands	102,038	166,712	189,747	224,671
Working capital turnover		3.75	4.77	1.19	1.60

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $388,788K ÷ ($205,842K – $102,038K)
= 3.75

ADEIA CORP's working capital turnover has shown fluctuations over the past four years. In 2023, the working capital turnover ratio decreased to 3.75 from 4.77 in 2022. This suggests that the company's efficiency in utilizing its working capital to generate revenue decreased in 2023. However, compared to 2021 and 2020, the ratio is still relatively high, indicating an improvement in working capital utilization. Overall, ADEIA CORP needs to closely monitor and manage its working capital efficiency to ensure optimal performance and profitability.