ADEIA CORP (ADEA)

Current 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
Total current assets	US$ in thousands	258,376	244,710	219,383	206,121	205,842	219,784	200,374	208,803	258,713	553,964	577,755	531,533	519,474	518,707	520,210	545,653
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
Current ratio		3.53	3.42	3.00	2.23	2.02	2.68	2.33	2.12	1.55	2.46	2.74	2.71	2.74	2.49	2.89	2.90

December 31, 2024 calculation

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

ADEIA CORP's current ratio has fluctuated over the past few years. The company's current ratio ranged from a high of 3.53 on December 31, 2024, to a low of 1.55 on December 31, 2022. Generally, a current ratio above 2 is considered healthy, as it indicates that the company has more current assets than current liabilities to cover its short-term obligations.

ADEIA CORP experienced a significant decline in its current ratio from September 30, 2022, to December 31, 2022, which might have raised concerns about its short-term liquidity position. However, the company managed to improve its current ratio in the following periods, reaching a peak of 3.53 on December 31, 2024. This upward trend suggests that ADEIA CORP was able to strengthen its short-term financial position and ability to cover its current obligations efficiently.

Overall, fluctuations in ADEIA CORP's current ratio demonstrate varying levels of liquidity and the company's ability to manage its short-term liabilities. It is important for investors and stakeholders to monitor these changes to assess the company's financial health and liquidity risk over time.