ADEIA CORP (ADEA)

Pretax margin

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

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $79,976K ÷ $388,788K
= 20.57%

The pretax margin for ADEIA CORP has shown significant variability over the past four years. In 2023, the pretax margin stood at 20.57%, indicating that the company generated a profit before taxes equivalent to 20.57% of its total revenue. This is a positive sign for the company's profitability compared to the negative pretax margins reported in the previous two years.

In 2022, ADEIA CORP incurred a pretax loss of 73.93%, signifying that the company's expenses exceeded its revenue before tax. This was a substantial decline from the positive pretax margin of 25.48% in 2020, wherein the company generated healthy profits before taxes.

The negative pretax margin in 2021 at -12.94% suggests that the company's expenses still exceeded its revenue before tax, albeit to a lesser extent compared to the previous year. The positive trend seen in 2023 indicates a potential turnaround in the company's financial performance.

Overall, ADEIA CORP's pretax margin has shown variability, ranging from negative to positive figures over the past four years. This highlights the importance of closely monitoring the company's cost management strategies and revenue generation efforts to ensure sustained profitability in the future.