ADEIA CORP (ADEA)

Return on assets (ROA)

		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
Total assets	US$ in thousands	1,097,960	1,105,560	1,210,530	2,470,020	2,701,180
ROA		5.89%	6.09%	-24.44%	-2.25%	5.43%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $64,623K ÷ $1,097,960K
= 5.89%

The return on assets (ROA) for ADEIA CORP has varied over the years based on the provided data.

- As at December 31, 2020, the ROA was 5.43%. This indicates that ADEIA CORP generated a return of 5.43 cents for every dollar of assets it held during that period.
- In the following year, as at December 31, 2021, the ROA declined to -2.25%, implying that the company experienced a negative return on its assets. This suggests that ADEIA CORP may have struggled to effectively utilize its assets to generate profit.
- By December 31, 2022, the ROA further deteriorated to -24.44%. A significant negative ROA is concerning as it indicates that the company's assets are not being efficiently utilized to generate profits, potentially pointing to operational or financial challenges.
- However, by December 31, 2023, the ROA improved to 6.09%, showing that ADEIA CORP was able to generate a positive return on its assets during that period.
- As of December 31, 2024, the ROA remained relatively stable at 5.89%, indicating that the company continued to effectively utilize its assets to generate returns for its stakeholders.

In conclusion, ADEIA CORP's ROA has fluctuated over the years, with periods of both positive and negative returns. It is essential for the company to consistently monitor and optimize its asset utilization to ensure sustainable profitability in the long term.