ADEIA CORP (ADEA)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Gross profit (ttm)	US$ in thousands	190,494	256,148	-100,199	-38,537	11,534	-2,051	402,448	410,007	391,240	580,614	553,368	454,229
Revenue (ttm)	US$ in thousands	388,788	405,210	393,110	417,708	438,933	433,922	564,004	678,461	761,525	721,073	704,491	619,850
Gross profit margin		49.00%	63.21%	-25.49%	-9.23%	2.63%	-0.47%	71.36%	60.43%	51.38%	80.52%	78.55%	73.28%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $190,494K ÷ $388,788K
= 49.00%

ADEIA CORP's gross profit margin has been fluctuating over the past few quarters. In the most recent quarter, the gross profit margin was 49.00%, indicating that the company retained 49.00% of its revenue after accounting for the cost of goods sold. This represents a decrease from the previous quarter's margin of 63.21%.

Looking further back, the gross profit margin was negative in the second and third quarters of 2023, which is a concerning sign as it suggests that the company's cost of goods sold exceeded its revenue during those periods.

In contrast, the company had strong gross profit margins in the fourth quarter of 2022 and the first quarter of 2021, at 71.36% and 80.52% respectively. This indicates that in those periods, ADEIA CORP was able to generate a significant profit margin on its products or services.

Overall, the varying trend in ADEIA CORP's gross profit margin suggests fluctuations in the company's ability to control its production costs and generate revenue, emphasizing the importance of closely monitoring and managing cost efficiencies in the business operations.