ADEIA CORP (ADEA)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 454,435 519,550 619,580 729,392 795,661
Total assets US$ in thousands 1,097,960 1,105,560 1,210,530 2,470,020 2,701,180
Debt-to-assets ratio 0.41 0.47 0.51 0.30 0.29

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $454,435K ÷ $1,097,960K
= 0.41

The debt-to-assets ratio of ADEIA CORP has shown some fluctuation over the years based on the provided data.

As of December 31, 2020, the ratio was 0.29, indicating that 29% of the company's assets were financed by debt. By the end of 2021, the ratio had increased slightly to 0.30. This suggests a relatively stable debt position in relation to the company's assets.

However, there was a significant spike in the ratio to 0.51 by December 31, 2022, indicating that more than half of ADEIA CORP's assets were funded by debt. This substantial increase could potentially signal a higher level of financial leverage or a decrease in asset value during that period.

Subsequently, the ratio decreased to 0.47 by the end of 2023 and further to 0.41 by the end of 2024. These reductions suggest a potential improvement in the company's debt management or an increase in asset value during those years.

Overall, the trend in ADEIA CORP's debt-to-assets ratio indicates some variability in the company's capital structure over the analyzed period, with a notable increase in leverage in 2022 followed by a gradual decrease in subsequent years. It would be prudent for stakeholders to monitor this ratio closely to assess the company's financial risk and stability.