ADEIA CORP (ADEA)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-capital ratio		0.59	0.67	0.35	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $519,550K ÷ ($519,550K + $356,622K)
= 0.59

The debt-to-capital ratio of ADEIA CORP has shown some fluctuations over the past four years. In 2023, the ratio decreased to 0.59 from 0.67 in 2022, indicating a lower level of debt relative to the company's total capital. However, compared to the ratios in 2021 and 2020, which were both 0.35, the 2023 ratio remains relatively higher.

A decreasing trend in the debt-to-capital ratio can suggest that the company is reducing its reliance on debt financing and improving its financial stability. Conversely, a higher ratio may indicate increased financial risk due to higher debt levels in proportion to total capital.

Overall, monitoring the debt-to-capital ratio of ADEIA CORP over time can provide insights into the company's capital structure and its ability to manage debt effectively.