ADEIA CORP (ADEA)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	64,623	67,372	-295,880	-55,457	146,762
Revenue	US$ in thousands	376,024	388,788	438,933	391,212	515,919
Net profit margin		17.19%	17.33%	-67.41%	-14.18%	28.45%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $64,623K ÷ $376,024K
= 17.19%

ADEIA CORP's net profit margin has fluctuated significantly over the years. In December 31, 2020, the company reported a strong net profit margin of 28.45%, indicating that for every dollar of revenue generated, the company retained $0.2845 as profit. However, this trend reversed in the following years, with negative net profit margins of -14.18% in December 31, 2021, -67.41% in December 31, 2022. These negative figures suggest that the company's expenses exceeded its revenues, resulting in net losses during these periods.

The company managed to improve its performance in December 31, 2023, and December 31, 2024, achieving positive net profit margins of 17.33% and 17.19%, respectively. This indicates that the company was more efficient in generating profits from its sales during these years compared to the previous ones.

Overall, the fluctuating trajectory of ADEIA CORP's net profit margin reflects varying levels of profitability and operational efficiency over the years. It is essential for the company to sustain positive net profit margins to ensure long-term financial sustainability and growth.