ADEIA CORP (ADEA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.05% | 49.00% | -35.62% | 62.88% | 78.97% |
| Operating profit margin | 34.20% | 35.04% | 34.87% | 30.43% | 51.84% |
| Pretax margin | 21.59% | 20.57% | -73.93% | -12.94% | 25.48% |
| Net profit margin | 17.19% | 17.33% | -67.41% | -14.18% | 28.45% |
ADEIA CORP's profitability ratios have shown fluctuations over the years. The gross profit margin decreased from 78.97% in 2020 to 62.88% in 2021, then experienced a significant decline to -35.62% in 2022, before recovering to 49.00% in 2023 and 50.05% in 2024. This indicates that the company faced challenges in maintaining its gross profit margin, but managed to improve it in the later years.
Similarly, the operating profit margin declined from 51.84% in 2020 to 30.43% in 2021, before increasing to 34.87% in 2022, 35.04% in 2023, and 34.20% in 2024. This suggests that although the company's operating profit margin improved in the following years, it did not reach the levels seen in 2020.
The pretax margin was 25.48% in 2020, then dipped to -12.94% in 2021, further decreasing to -73.93% in 2022, and later recovered to 20.57% in 2023 and 21.59% in 2024. The significant negative margins in 2021 and 2022 may indicate financial difficulties, but the positive margins in 2023 and 2024 suggest an improvement in the company's financial performance.
Lastly, the net profit margin was 28.45% in 2020, decreased to -14.18% in 2021, further declined to -67.41% in 2022, and then rose to 17.33% in 2023 and 17.19% in 2024. The negative margins in 2021 and 2022 are concerning, but the positive margins in 2023 and 2024 indicate better profitability.
Overall, ADEIA CORP's profitability ratios demonstrate a mixed performance, with improvements in some areas but challenges in others, indicating a need for further analysis to understand the underlying reasons for these fluctuations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.71% | 12.32% | 12.64% | 4.82% | 9.90% |
| Return on assets (ROA) | 5.89% | 6.09% | -24.44% | -2.25% | 5.43% |
| Return on total capital | 15.11% | 15.55% | 16.62% | 5.73% | 11.87% |
| Return on equity (ROE) | 16.30% | 18.89% | -98.16% | -4.11% | 10.07% |
ADEIA CORP's profitability ratios indicate fluctuations in its performance over the years.
- Operating return on assets (Operating ROA) has shown variability, with a peak of 12.64% in 2022, a downturn to 4.82% in 2021, and subsequent recovery to 11.71% in 2024. This metric measures the efficiency of the company's operations in generating profits from its assets.
- Return on assets (ROA) has also been inconsistent, with negative returns in 2021 and 2022 but positive returns in 2020, 2023, and 2024. ROA reflects the company's ability to generate earnings from its total assets.
- Return on total capital has demonstrated an upward trend, reaching a high of 16.62% in 2022. This ratio indicates the return the company generates from all its capital, including debt and equity.
- Return on equity (ROE) has been volatile, with negative returns in 2021 and 2022 but positive returns in the other years, peaking at 18.89% in 2023. ROE evaluates the profitability of the company in relation to the shareholders' equity.
Overall, ADEIA CORP's profitability ratios reflect a mixed performance, with certain metrics showing improvement over the years while others display inconsistency and volatility. Further analysis of the company's financial and operational strategies may provide insights into the factors driving these fluctuations.