ADEIA CORP (ADEA)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	136,230	146,206	121,731	138,729	153,060	136,784	158,629	155,369	119,028	381,671	325,221	276,041
Long-term debt	US$ in thousands	519,550	576,781	591,482	610,594	619,580	752,170	711,259	720,333	729,392	738,438	747,469	784,666	795,661	956,530	967,471
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
Return on total capital		15.55%	15.88%	13.31%	14.87%	16.62%	7.84%	7.63%	7.45%	5.73%	18.02%	14.86%	12.39%

December 31, 2023 calculation

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

ADEIA CORP's return on total capital has shown some variability over the past several quarters. The return on total capital ranged from 5.73% to 18.02% during the period under review.

The return on total capital was relatively stable around the 15% mark for most quarters, indicating the company's ability to generate returns on the capital invested in the business. However, there were fluctuations in the return on total capital, with a notable decrease in the third quarter of 2022, where the return dropped to 7.84%, before showing an upward trend in the following quarters.

Overall, ADEIA CORP's return on total capital has shown some volatility, but the company has managed to maintain a healthy return on the capital employed, which is essential for sustainable growth and value creation for its stakeholders. It is important for the company to continue monitoring and optimizing its capital allocation to ensure continued profitability and efficiency in its operations.