ADEIA CORP (ADEA)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	67,372	-295,880	-55,457	146,762
Revenue	US$ in thousands	388,788	438,933	391,212	515,919
Net profit margin		17.33%	-67.41%	-14.18%	28.45%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $67,372K ÷ $388,788K
= 17.33%

The net profit margin of ADEIA CORP has shown significant fluctuations over the past four years. In 2020, the net profit margin was at a robust 28.45%, indicating that the company was able to convert 28.45% of its total revenue into profit after accounting for all expenses. However, this performance deteriorated drastically in 2021 when the net profit margin dropped to -14.18%, implying that the company incurred a loss equivalent to 14.18% of its total revenue.

The situation worsened in 2022, with a net profit margin of -67.41%, reflecting a substantial loss relative to revenue. This significant decline may raise concerns about the company's financial health and operational efficiency during that year. Notably, in 2023, the net profit margin recovered to 17.33%, indicating that the company was able to improve its profitability compared to the previous year, yet it still remained below the levels seen in 2020.

Overall, the fluctuations in ADEIA CORP's net profit margin suggest variability in its profitability and financial performance over the analyzed period. It is essential for the company to focus on sustaining positive net profit margins to ensure long-term profitability and financial stability.