ADEIA CORP (ADEA)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	81,187	79,976	-324,500	-50,629	131,450
Revenue	US$ in thousands	376,024	388,788	438,933	391,212	515,919
Pretax margin		21.59%	20.57%	-73.93%	-12.94%	25.48%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $81,187K ÷ $376,024K
= 21.59%

ADEIA CORP's pretax margin, which indicates the percentage of earnings retained after accounting for operating expenses but before taxes, has shown fluctuating trends over the years. In December 31, 2020, the pretax margin was strong at 25.48%, signifying effective cost management and profitability.

However, in December 31, 2021, the pretax margin turned negative at -12.94%, suggesting that the company's expenses exceeded its operating income, leading to a loss before taxes. This negative trend worsened in December 31, 2022, with a pretax margin plummeting to -73.93%, raising concerns about the company's financial health and sustainability.

The situation improved in December 31, 2023, as the pretax margin recovered to a positive 20.57%, indicating a return to profitability and better cost control measures. By December 31, 2024, the pretax margin further increased to 21.59%, showing a positive trajectory in the company's financial performance.

Overall, the analysis of ADEIA CORP's pretax margin reveals a mixed performance, with notable fluctuations in profitability over the years. The company should focus on sustaining and improving its pretax margin to ensure long-term financial stability and success.