ADEIA CORP (ADEA)

Working capital 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
Total current assets	US$ in thousands	258,376	205,842	258,713	519,474	546,304
Total current liabilities	US$ in thousands	73,106	102,038	166,712	189,747	224,671
Working capital turnover		2.03	3.75	4.77	1.19	1.60

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $376,024K ÷ ($258,376K – $73,106K)
= 2.03

ADEIA CORP's working capital turnover has fluctuated over the past five years. In 2020, the company had a working capital turnover of 1.60, indicating that it generated $1.60 in revenue for every dollar of working capital invested. However, in 2021, this ratio declined to 1.19, suggesting that the company may have been less efficient in utilizing its working capital to generate sales.

The year 2022 saw a significant improvement in working capital turnover, rising to 4.77. This sharp increase indicates that ADEIA CORP was able to generate almost $4.77 in revenue for every dollar of working capital invested, showcasing a more efficient use of its resources.

In 2023, the working capital turnover remained relatively high at 3.75, indicating continued efficiency in utilizing working capital to drive sales. However, in 2024, the ratio dropped to 2.03, showing a decrease in the company's ability to generate revenue from its working capital compared to the previous year.

Overall, ADEIA CORP's working capital turnover has displayed variability, with fluctuations in efficiency in converting working capital into revenue over the years. Monitoring this ratio going forward can provide insights into the company's management of working capital and operational efficiency.