ADEIA CORP (ADEA)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	78,825	54,560	114,555	80,428	170,188
Short-term investments	US$ in thousands	35,889	34,790	4,107	72,906	90,796
Receivables	US$ in thousands	138,192	114,570	132,234	221,360	248,406
Total current liabilities	US$ in thousands	73,106	102,038	166,712	189,747	224,671
Quick ratio		3.46	2.00	1.50	1.97	2.27

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($78,825K + $35,889K + $138,192K) ÷ $73,106K
= 3.46

ADEIA CORP's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the years. In December 2020, the quick ratio was 2.27, indicating that the company had $2.27 in liquid assets available to cover each dollar of current liabilities.

By December 2021, the quick ratio decreased to 1.97, suggesting a slight decline in the company's liquidity position. This ratio further declined to 1.50 by December 2022, potentially indicating a tighter liquidity position compared to the previous years.

However, there was an improvement in liquidity by December 2023, as the quick ratio increased to 2.00. This suggests that the company had improved its ability to meet short-term obligations with its liquid assets compared to the previous year.

In the most recent period, December 2024, ADEIA CORP's quick ratio significantly improved to 3.46, indicating a strong liquidity position. This level of liquidity would imply that the company has more than enough liquid assets to cover its short-term liabilities, which could be beneficial for its overall financial health and operational flexibility.

It is important for stakeholders to closely monitor the trend of the quick ratio over time to assess ADEIA CORP's liquidity management and ability to meet its short-term obligations efficiently.