ADEIA CORP (ADEA)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	396,571	356,622	301,412	1,349,630	1,456,880
Debt-to-equity ratio		1.15	1.46	2.06	0.54	0.55

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $454,435K ÷ $396,571K
= 1.15

Based on the provided data, ADEIA CORP's debt-to-equity ratio has shown fluctuations over the past five years.

As of December 31, 2020, the debt-to-equity ratio was 0.55, indicating that the company had more equity relative to debt. This implies a lower level of financial risk as the company relied more on equity financing.

By December 31, 2021, the debt-to-equity ratio decreased slightly to 0.54, further emphasizing the company's preference for equity financing.

However, there was a significant increase in the debt-to-equity ratio by December 31, 2022, reaching 2.06. This sharp rise suggests a substantial increase in debt relative to equity, potentially signaling higher financial risk and a shift towards debt financing.

The ratio decreased to 1.46 by December 31, 2023, but still indicates a notable reliance on debt financing compared to previous years.

As of December 31, 2024, the debt-to-equity ratio further decreased to 1.15, suggesting some improvement in the company's debt structure, although it remains above the levels observed in the initial years.

Overall, the trend in ADEIA CORP's debt-to-equity ratio indicates varying levels of reliance on debt financing over the years, with potential implications for the company's financial risk and capital structure. Further analysis of the reasons behind these fluctuations would be necessary to fully assess the company's financial health.