ADEIA CORP (ADEA)

Working capital 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
Total current assets	US$ in thousands	205,842	219,784	200,374	208,803	258,713	553,964	577,755	531,533	519,474	518,707	520,210	545,653	546,304	515,120	544,786
Total current liabilities	US$ in thousands	102,038	81,912	86,111	98,558	166,712	225,395	210,899	196,440	189,747	208,623	179,890	187,892	224,671	207,947	214,455
Working capital turnover		3.75	2.94	3.44	3.79	4.77	1.32	1.54	2.02	2.31	2.33	2.07	1.73

December 31, 2023 calculation

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

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to generate more revenue.

Analyzing the working capital turnover ratio of ADEIA CORP over multiple periods, we observe fluctuations in the ratio. The ratio was highest at 4.77 on Dec 31, 2022, indicating that the company efficiently utilized its working capital to generate sales revenue. However, on Sep 30, 2022, the ratio dropped significantly to 1.32, suggesting a less efficient use of working capital during that period.

Overall, the trend shows some variability in the efficiency of working capital management by ADEIA CORP. It is important for the company to consistently monitor and improve its working capital turnover ratio to ensure optimal utilization of its resources and sustainable growth in sales revenue.