ADEIA CORP (ADEA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	136,230	153,060	119,028	267,455
Long-term debt	US$ in thousands	519,550	619,580	729,392	795,661
Total stockholders’ equity	US$ in thousands	356,622	301,412	1,349,630	1,456,880
Return on total capital		15.55%	16.62%	5.73%	11.87%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $136,230K ÷ ($519,550K + $356,622K)
= 15.55%

ADEIA CORP's return on total capital has fluctuated over the past four years. In 2023, the return on total capital was 15.55%, a decrease from the previous year's 16.62%. Despite this decrease, the company's return on total capital in 2023 still indicates a relatively strong performance in generating profits from its total invested capital.

Comparing to 2021, when the return on total capital was 5.73%, the significant increase in 2023 demonstrates ADEIA CORP's improved efficiency in utilizing its capital to generate returns. Additionally, in 2020, the return on total capital was 11.87%, which was higher than 2023 but still lower than 2022.

Overall, ADEIA CORP has shown some variability in its return on total capital over the analyzed period, suggesting fluctuations in the company's ability to generate profits from its total capital investment. Continued monitoring of this ratio will be essential to assess the company's financial performance and efficiency in capital allocation.