ADEIA CORP (ADEA)

Financial leverage ratio

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

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,105,560K ÷ $356,622K
= 3.10

ADEIA CORP's financial leverage ratio has shown significant fluctuations over the past four years. In 2023, the ratio stands at 3.10, representing a decrease from the previous year's 4.02. This indicates that the company relied less on debt financing compared to the prior year. However, the ratio is still higher than in 2021 when it was 1.83, suggesting an increase in leverage over the two-year period.

When comparing the current ratio to that of 2020, it is noteworthy that there has been a slight decrease from 1.85 to 3.10. This implies that ADEIA CORP is currently using more debt relative to equity to finance its operations compared to 2020.

Overall, the fluctuations in ADEIA CORP's financial leverage ratio demonstrate a mix of leveraging and deleveraging strategies over the past four years. It is essential for stakeholders to assess the company's risk profile and financial health in light of these changes in leverage.