ADEIA CORP (ADEA)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	3.12	4.15	3.82	2.95	6.67	6.47	5.80
Days of sales outstanding (DSO)	days	134.14	154.55	116.84	112.22	107.56	114.88	97.60	100.38	109.96	198.70	162.23	119.42	106.10	120.81	144.79	159.63
Number of days of payables	days	15.63	14.72	8.93	8.89	17.71	—	13.63	2.95	5.24	8.67	8.02	6.66	0.26	11.36	9.94	16.49
Cash conversion cycle	days	118.51	139.83	107.91	103.32	89.85	114.88	83.97	97.44	104.72	193.14	158.36	116.58	108.79	116.11	141.32	148.94

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 134.14 – 15.63
= 118.51

The cash conversion cycle of ADEIA CORP has exhibited fluctuations over the years from 2021 to 2024. The cash conversion cycle is a metric that measures how long it takes for a company to convert its investments in inventory and accounts receivable into cash inflows from sales.

In the first quarter of 2021, the cash conversion cycle was 148.94 days, indicating a relatively lengthy period for ADEIA CORP to convert its investments into cash. However, by the end of 2023, the cash conversion cycle had decreased to 89.85 days, suggesting an improvement in the efficiency of the company's cash conversion process.

The data shows that there was a significant increase in the cash conversion cycle in the second quarter of 2022, reaching 158.36 days, followed by a peak in the third quarter of 2022 at 193.14 days. These spikes may indicate challenges in managing inventory and accounts receivable during that period.

By the end of 2024, the cash conversion cycle had increased to 118.51 days compared to the previous quarter, potentially signaling a slower turnover of investments into cash flow.

Overall, monitoring the cash conversion cycle can provide valuable insights into ADEIA CORP's operational efficiency, inventory management, and collection policies, which are crucial aspects of its overall financial health and performance in converting its assets into cash.