ADEIA CORP (ADEA)

Current ratio

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Total current assets	US$ in thousands	205,842	219,784	200,374	208,803	258,713	553,964	577,755	531,533	519,474	518,707	520,210	545,653	546,304	515,120	544,786
Total current liabilities	US$ in thousands	102,038	81,912	86,111	98,558	166,712	225,395	210,899	196,440	189,747	208,623	179,890	187,892	224,671	207,947	214,455
Current ratio		2.02	2.68	2.33	2.12	1.55	2.46	2.74	2.71	2.74	2.49	2.89	2.90	2.43	2.48	2.54

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $205,842K ÷ $102,038K
= 2.02

The current ratio of ADEIA CORP has shown some fluctuations over the past four years, ranging from a low of 1.55 to a high of 2.90. Generally, a current ratio above 1 indicates that a company has more current assets than current liabilities, which is positive for its short-term liquidity.

From the trend observed, we can see that the current ratio has been relatively stable around the range of 2.0 to 2.5 in recent quarters, with occasional peaks. A ratio above 2 suggests that ADEIA CORP has a strong ability to meet its short-term obligations using its current assets. However, a significant decrease in the ratio in some periods, such as the dip to 1.55 in December 2022, may raise concerns about the company's liquidity position.

It is important to monitor the current ratio closely and consider other financial metrics in conjunction with it to gain a more comprehensive understanding of ADEIA CORP's liquidity and financial health.