ADEIA CORP (ADEA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	114,570	132,234	221,360	248,406
Total current liabilities	US$ in thousands	102,038	166,712	189,747	224,671
Quick ratio		2.00	1.50	1.97	2.27

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($54,560K + $34,790K + $114,570K) ÷ $102,038K
= 2.00

The quick ratio of ADEIA CORP has fluctuated over the past four years, ranging from 1.50 to 2.27. The quick ratio measures the company's ability to meet its short-term liabilities using its most liquid assets, excluding inventory. A higher quick ratio signifies a stronger ability to cover short-term obligations without needing to sell inventory.

In 2023, the quick ratio improved to 2.00 from 1.50 in 2022, indicating that ADEIA CORP had a better ability to meet its short-term obligations with its liquid assets. However, this level was lower compared to the quick ratio of 2.27 in 2020.

Although the quick ratio provides insight into the company's liquidity position, it is essential to consider other financial ratios and factors to obtain a more comprehensive view of ADEIA CORP's overall financial health and performance.