ADEIA CORP (ADEA)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	67,372	-295,880	-55,457	146,762
Total assets	US$ in thousands	1,105,560	1,210,530	2,470,020	2,701,180
ROA		6.09%	-24.44%	-2.25%	5.43%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $67,372K ÷ $1,105,560K
= 6.09%

Based on the data provided, ADEIA CORP's return on assets (ROA) has shown significant fluctuations over the past four years. In 2023, the ROA improved to 6.09%, indicating that the company generated a return of 6.09% on its total assets during the year. This positive ROA suggests that ADEIA CORP effectively utilized its assets to generate profits.

However, in 2022, the ROA was negative at -24.44%, indicating that the company incurred losses that exceeded its total assets. This signals poor asset management and operational inefficiencies during that year.

Similarly, in 2021, the ROA was negative at -2.25%, implying that the company continued to struggle in generating positive returns on its assets. This trend was reversed in 2020, when the ROA stood at 5.43%, indicating a moderate return on assets.

Overall, ADEIA CORP's ROA has been volatile, with significant swings from negative to positive territory. The company may need to focus on enhancing its asset utilization efficiency and profitability to ensure consistent and sustainable returns in the future.