ADEIA CORP (ADEA)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 35.04% | 36.08% | 30.97% | 33.21% | 34.87% | 31.52% | 28.13% | 22.90% | 15.63% | 52.93% | 46.16% | 44.53% |
| Pretax margin | 20.57% | 22.01% | -80.20% | -75.21% | -73.93% | -85.04% | -4.77% | -4.91% | -6.65% | 20.31% | 21.81% | 19.88% |
| Net profit margin | 17.33% | 31.69% | -72.44% | -69.86% | -67.41% | -88.53% | -7.15% | -5.28% | -7.28% | 19.26% | 21.89% | 21.41% |
Adeia Corp's profitability ratios have displayed significant fluctuations over the past few quarters. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has been inconsistent, with a marked decline in profitability in the second and third quarters of 2023.
The operating profit margin, which measures the company's ability to generate profits from its core operations, has also shown variability but generally remained positive, indicating operational efficiency in most quarters. However, there was a notable decrease in the margin in the fourth quarter of 2022.
The pretax margin, reflecting the percentage of income before taxes relative to total revenue, exhibited substantial volatility, with significant losses recorded in the second and third quarters of 2023 and the previous year's fourth quarter. These results raise concerns about the company's ability to manage operational expenses and other costs effectively during these periods.
Lastly, the net profit margin, which indicates the percentage of revenue that translates into net income, demonstrated fluctuations but generally remained positive except for significant losses in the second and third quarters of 2023 and a substantial loss in the fourth quarter of 2022.
Overall, Adeia Corp's profitability ratios suggest instability in financial performance, highlighting the need for the company to focus on cost management, revenue generation, and overall operational efficiency to enhance profitability and long-term sustainability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.32% | 13.01% | 10.84% | 12.02% | 12.64% | 6.33% | 6.39% | 6.27% | 4.82% | 15.12% | 12.62% | 10.48% |
| Return on assets (ROA) | 6.09% | 11.42% | -25.37% | -25.29% | -24.44% | -17.78% | -1.62% | -1.44% | -2.25% | 5.50% | 5.98% | 5.04% |
| Return on total capital | 15.55% | 15.88% | 13.31% | 14.87% | 16.62% | 7.84% | 7.63% | 7.45% | 5.73% | 18.02% | 14.86% | 12.39% |
| Return on equity (ROE) | 18.89% | 37.35% | -88.15% | -90.45% | -98.16% | -38.71% | -2.95% | -2.62% | -4.11% | 10.07% | 10.70% | 9.19% |
ADEIA CORP's profitability ratios show mixed performance over the last few quarters.
- Operating return on assets (Operating ROA) has shown some volatility but generally trending upwards from 6.27% in Mar 2022 to 13.01% in Sep 2023, indicating that the company is efficiently generating profits from its assets.
- Return on assets (ROA) has fluctuated significantly, with negative values in Jun 2023 and Mar 2023, suggesting that the company may have struggled to generate profits relative to its total assets in those periods.
- Return on total capital has also varied, peaking at 18.02% in Sep 2021 but showing a decline in recent quarters, indicating that the company's overall capital efficiency has decreased.
- Return on equity (ROE) has shown a similar pattern to ROA, with negative values in Jun 2023 and Mar 2023, implying that the company has faced challenges in generating profits for its shareholders in those periods.
Overall, while ADEIA CORP has shown improvements in operating profitability, there are concerns regarding the overall return on assets, capital, and equity, suggesting areas for potential improvement and further analysis.