ADEIA CORP (ADEA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	54,560	114,555	80,428	170,188
Short-term investments	US$ in thousands	34,790	4,107	72,906	90,796
Total current liabilities	US$ in thousands	102,038	166,712	189,747	224,671
Cash ratio		0.88	0.71	0.81	1.16

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($54,560K + $34,790K) ÷ $102,038K
= 0.88

Based on the data provided for ADEIA CORP's cash ratio over the past four years, we can observe fluctuations in the company's ability to cover its current liabilities with its available cash and cash equivalents.

In 2020, ADEIA CORP had a cash ratio of 1.16, indicating that the company held more than enough cash to cover its short-term obligations. However, this ratio declined to 0.81 in 2021, suggesting a decrease in the company's liquidity position.

In 2022, the cash ratio further decreased to 0.71, indicating potential challenges in meeting immediate payment obligations with available cash on hand. Subsequently, there was a slight improvement in 2023 with a cash ratio of 0.88, but it still remains below the 2020 level.

Overall, the trend in ADEIA CORP's cash ratio indicates variability in the company's liquidity position over the past four years, with a notable decline from 2020 to 2022 before a modest improvement in 2023. It is essential for the company to closely monitor and manage its cash resources to ensure it can meet its short-term liabilities effectively.