ADEIA CORP (ADEA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 49.00% | -35.62% | 62.88% | 78.97% |
| Operating profit margin | 35.04% | 34.87% | 30.43% | 51.84% |
| Pretax margin | 20.57% | -73.93% | -12.94% | 25.48% |
| Net profit margin | 17.33% | -67.41% | -14.18% | 28.45% |
ADEIA CORP's profitability ratios have shown significant fluctuations over the past four years. The gross profit margin has varied widely, from a low of -35.62% in 2022 to a high of 78.97% in 2020, indicating volatility in the company's cost of goods sold relative to its revenue.
The operating profit margin has been relatively stable, hovering around the mid-30% range, suggesting the company has been effective in managing its operating expenses in relation to its revenue.
However, the pretax margin has been inconsistent, ranging from a significant loss of -73.93% in 2022 to a positive margin of 25.48% in 2020. This indicates variability in the company's performance before accounting for taxes.
Similarly, the net profit margin has also exhibited significant fluctuations, with a dramatic negative figure of -67.41% in 2022 to a positive margin of 28.45% in 2020. This suggests inconsistencies in the company's ability to generate profits after accounting for all expenses, including taxes.
Overall, ADEIA CORP's profitability ratios indicate a lack of stability and consistency in its financial performance over the analyzed period, which may require further analysis to understand the underlying reasons for these fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.32% | 12.64% | 4.82% | 9.90% |
| Return on assets (ROA) | 6.09% | -24.44% | -2.25% | 5.43% |
| Return on total capital | 15.55% | 16.62% | 5.73% | 11.87% |
| Return on equity (ROE) | 18.89% | -98.16% | -4.11% | 10.07% |
ADEIA CORP's profitability ratios exhibit fluctuations over the past four years.
The Operating return on assets (Operating ROA) has shown a slight decrease from 12.64% in 2022 to 12.32% in 2023, indicating that ADEIA CORP's ability to generate operating income from its assets has marginally decreased. However, the company has maintained a relatively stable Operating ROA performance over the period.
Return on assets (ROA) has shown significant volatility, with negative performance in 2022 (-24.44%) followed by positive returns in the other years. This suggests that ADEIA CORP faced challenges in generating net profits from its total assets in 2022 but managed to improve its profitability in subsequent years.
Return on total capital has also displayed fluctuations, reaching its highest level in 2022 (16.62%) and slightly declining to 15.55% in 2023. This ratio indicates the efficiency of ADEIA CORP in generating returns from all invested capital, including debt and equity.
Return on equity (ROE) reveals a sharp negative performance in 2022 (-98.16%), indicating a substantial loss relative to shareholders' equity. However, the company managed to bounce back in 2023 with a robust ROE of 18.89%, showing its ability to generate profits for the equity shareholders.
In summary, ADEIA CORP's profitability ratios reflect a mixed performance over the years, with stability in Operating ROA, volatility in ROA, fluctuations in Return on total capital, and a significant recovery in ROE after a challenging year in 2022. Further analysis would be needed to understand the underlying factors contributing to these fluctuations and guide potential strategies for sustainable profitability.