ADEIA CORP (ADEA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 128,609 | 136,230 | 153,060 | 119,028 | 267,455 |
| Long-term debt | US$ in thousands | 454,435 | 519,550 | 619,580 | 729,392 | 795,661 |
| Total stockholders’ equity | US$ in thousands | 396,571 | 356,622 | 301,412 | 1,349,630 | 1,456,880 |
| Return on total capital | 15.11% | 15.55% | 16.62% | 5.73% | 11.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $128,609K ÷ ($454,435K + $396,571K)
= 15.11%
ADEIA CORP's return on total capital has fluctuated over the past five years. In 2020, the return on total capital was 11.87%, showing a healthy performance. However, in 2021, there was a decrease to 5.73%, indicating a less efficient use of total capital.
The company rebounded in 2022 with a return on total capital of 16.62%, suggesting a significant improvement in capital utilization. This positive trend continued in 2023, with a return on total capital of 15.55%, indicating the company's ability to generate profits relative to its total capital.
In 2024, ADEIA CORP maintained a strong return on total capital of 15.11%, showing consistency in utilizing its capital efficiently to generate returns. Overall, the company's return on total capital has shown variability but has generally remained at satisfactory levels, reflecting effective capital management strategies.
Peer comparison
Dec 31, 2024