ADEIA CORP (ADEA)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	396,571	356,622	301,412	1,349,630	1,456,880
ROE		16.30%	18.89%	-98.16%	-4.11%	10.07%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $64,623K ÷ $396,571K
= 16.30%

ADEIA CORP's return on equity (ROE) has fluctuated significantly over the years based on the data provided. In December 31, 2020, the ROE was at a modest 10.07%, indicating a decent return on the shareholders' equity. However, in December 31, 2021, the ROE turned negative at -4.11%, suggesting that the company was not generating sufficient profits relative to the equity invested.

By December 31, 2022, the ROE plummeted to a significantly low -98.16%, indicating a substantial loss in shareholder value. This steep decline raises concerns about the company's financial performance and possibly its operational efficiency.

In December 31, 2023, there was a notable recovery in ROE, reaching 18.89%. This improvement could be a positive sign of the company's efforts to enhance profitability and effectively utilize shareholder equity.

By December 31, 2024, the ROE further increased to 16.30%, indicating a continued positive trend in generating returns for shareholders. Overall, ADEIA CORP's ROE performance has shown volatility and fluctuations, suggesting a need for consistent and sustainable strategies to drive shareholder value and profitability in the long term.