ADEIA CORP (ADEA)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	78,825	60,698	66,454	58,024	54,560	51,855	60,470	82,429	114,555	271,092	275,319	214,095	80,428	165,438	128,960	134,759
Short-term investments	US$ in thousands	35,889	35,655	32,197	35,106	34,790	34,303	28,174	3,923	4,107	6,856	14,444	58,658	72,906	76,442	77,336	107,194
Total current liabilities	US$ in thousands	73,106	71,498	73,223	92,604	102,038	81,912	86,111	98,558	166,712	225,395	210,899	196,440	189,747	208,623	179,890	187,892
Cash ratio		1.57	1.35	1.35	1.01	0.88	1.05	1.03	0.88	0.71	1.23	1.37	1.39	0.81	1.16	1.15	1.29

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($78,825K + $35,889K) ÷ $73,106K
= 1.57

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations without relying on external sources of funding.

Analyzing ADEIA CORP's cash ratio over the period from March 31, 2021, to December 31, 2024, reveals fluctuations in its liquidity position. The cash ratio ranged from a low of 0.71 on December 31, 2022, to a high of 1.57 on December 31, 2024. The company maintained a ratio above 1 for most of the period, indicating that it had sufficient cash on hand to cover its current liabilities.

However, there were some periods where the cash ratio dipped below 1, such as on December 31, 2022, and March 31, 2023. This suggests that ADEIA CORP may have faced some liquidity challenges during these quarters.

Overall, the upward trend in the cash ratio from December 31, 2022, to December 31, 2024, indicates an improvement in ADEIA CORP's liquidity position. It is essential for the company to continue monitoring and managing its cash levels effectively to ensure it can meet its short-term obligations in a timely manner.