ADEIA CORP (ADEA)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	1,097,960	1,105,560	1,210,530	2,470,020	2,701,180
Total stockholders’ equity	US$ in thousands	396,571	356,622	301,412	1,349,630	1,456,880
Financial leverage ratio		2.77	3.10	4.02	1.83	1.85

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,097,960K ÷ $396,571K
= 2.77

The financial leverage ratio of ADEIA CORP has exhibited fluctuations over the past five years. As of December 31, 2020, the ratio stood at 1.85, indicating that the company had $1.85 of debt for every $1 of equity. In the following year, the ratio decreased slightly to 1.83, suggesting a marginal improvement in the company's leverage position.

However, a significant increase in the financial leverage ratio was observed by the end of December 31, 2022, where the ratio spiked to 4.02. This sharp increase may signal a substantial increase in debt relative to equity, which could pose a higher financial risk for the company.

By December 31, 2023, the financial leverage ratio decreased to 3.10, indicating a slight reduction in the company's debt relative to equity compared to the previous year. This is a positive sign that the company may be taking steps to manage its leverage levels.

As of December 31, 2024, the financial leverage ratio further decreased to 2.77, continuing the trend of improving leverage position seen in the previous year. Overall, the trend in the financial leverage ratio of ADEIA CORP suggests fluctuations over the years, highlighting the importance of monitoring and managing the company's debt levels relative to equity to maintain a healthy financial position.