ADEIA CORP (ADEA)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 190,494 | -156,361 | 246,009 | 407,438 |
| Revenue | US$ in thousands | 388,788 | 438,933 | 391,212 | 515,919 |
| Gross profit margin | 49.00% | -35.62% | 62.88% | 78.97% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $190,494K ÷ $388,788K
= 49.00%
ADEIA CORP's gross profit margin has exhibited significant fluctuations over the past four years. In 2023, the gross profit margin stands at 49.00%, indicating that for every dollar in revenue, the company retains $0.49 after deducting the cost of goods sold. This represents a positive trend compared to the previous year (2022) where the company reported a negative gross profit margin of -35.62%, which suggests that the cost of goods sold exceeded the revenue generated.
The significant improvement in gross profit margin from 2022 to 2023 reflects potential operational efficiencies or pricing strategies implemented by ADEIA CORP. However, compared to 2021 and 2020, where the gross profit margins were 62.88% and 78.97% respectively, the current margin in 2023 is relatively lower. This could indicate a potential decrease in profitability or an increase in the cost of goods sold in the latest period.
Overall, the fluctuating trend in ADEIA CORP's gross profit margin calls for a closer examination of the company's cost structure, pricing strategies, and overall financial performance to determine the underlying factors driving these changes.
Peer comparison
Dec 31, 2023