ADEIA CORP (ADEA)

Return on equity (ROE)

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Net income (ttm)	US$ in thousands	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	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	1,456,880	1,290,570	1,353,310
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $67,372K ÷ $356,622K
= 18.89%

ADEIA CORP's return on equity (ROE) has shown significant fluctuations over the past few quarters, ranging from highly positive to negative values. In the most recent quarter, ending December 31, 2023, the ROE stood at 18.89%, indicating a reasonable return generated on the shareholders' equity.

However, looking back at previous quarters, the ROE has been highly volatile. In the quarter ending September 30, 2023, the ROE surged to 37.35%, suggesting a substantial increase in profitability and efficiency in that period. This was a significant improvement compared to the negative ROE figures reported in the two quarters prior.

On the other hand, the ROE figures for the quarters ending June 30, 2023, and March 31, 2023, were notably negative at -88.15% and -90.45% respectively. These negative ROE values indicate that the company's net income was insufficient to cover its shareholders' equity, leading to poor returns for investors.

Similarly, the ROE for the quarters ending December 31, 2022, and September 30, 2022, were extremely low at -98.16% and -38.71% respectively, indicating significant challenges in generating profits relative to the equity invested by shareholders.

Overall, based on the trend observed in the ROE figures, it is evident that ADEIA CORP has struggled to maintain consistent profitability and efficiency in recent quarters. The company needs to focus on improving its operational performance and generating higher returns on equity to enhance shareholder value in the long run.