ADEIA CORP (ADEA)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 64,623 41,295 46,213 39,250 67,372 128,402 -284,758 -291,802 -295,880 -384,169 -40,308 -35,801 -55,457 138,893 154,208 132,713
Total stockholders’ equity US$ in thousands 396,571 378,215 359,136 349,951 356,622 343,825 323,021 322,614 301,412 992,387 1,367,240 1,364,820 1,349,630 1,379,730 1,441,540 1,443,390
ROE 16.30% 10.92% 12.87% 11.22% 18.89% 37.35% -88.15% -90.45% -98.16% -38.71% -2.95% -2.62% -4.11% 10.07% 10.70% 9.19%

December 31, 2024 calculation

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

Over the analyzed period, ADEIA CORP's Return on Equity (ROE) has fluctuated significantly. Starting at 9.19% on March 31, 2021, the ROE improved to 10.70% by June 30, 2021. However, a negative trend emerged in the following quarters, with ROE percentages falling to -4.11% on December 31, 2021, and continuing to decrease to -98.16% by December 31, 2022.

The company's ROE remained negative until the third quarter of 2023 when it showed a substantial improvement, reaching 37.35%. This positive trend continued into the fourth quarter of 2023 and the first half of 2024, with ROE percentages of 18.89%, 11.22%, and 12.87%, respectively.

By the end of December 31, 2024, ADEIA CORP's ROE stood at 16.30%, indicating a recovery from the significant negative values observed in the previous quarters. The observed fluctuations in ROE suggest varying levels of profitability and efficiency in utilizing shareholders' equity during the analyzed period.