ADEIA CORP (ADEA)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		3.53	2.02	1.55	2.74	2.43

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $258,376K ÷ $73,106K
= 3.53

The current ratio of ADEIA CORP has shown mixed results over the past five years. In December 2020, the current ratio was 2.43, indicating that the company had $2.43 in current assets for every $1 in current liabilities. This ratio improved to 2.74 by December 2021, suggesting a stronger ability to cover short-term obligations.

However, in December 2022, the current ratio decreased to 1.55, which may raise concerns about the company's liquidity position. The ratio slightly bounced back to 2.02 by December 2023, indicating a partial recovery. Notably, the current ratio significantly improved to 3.53 by December 2024, reflecting a substantial increase in the company's ability to meet its short-term obligations.

Overall, while the company experienced fluctuations in its current ratio over the years, the upward trend seen in recent years, particularly in 2024, suggests an improvement in ADEIA CORP's liquidity position and ability to cover its short-term liabilities.