ADEIA CORP (ADEA)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Total assets	US$ in thousands	1,105,560	1,124,070	1,122,610	1,153,820	1,210,530	2,160,730	2,481,300	2,478,830	2,470,020	2,524,540	2,576,790	2,634,910	2,701,180	2,668,700	2,752,610
Total stockholders’ equity	US$ in thousands	356,622	343,825	323,021	322,614	301,412	992,387	1,367,240	1,364,820	1,349,630	1,379,730	1,441,540	1,443,390	1,456,880	1,290,570	1,353,310
Financial leverage ratio		3.10	3.27	3.48	3.58	4.02	2.18	1.81	1.82	1.83	1.83	1.79	1.83	1.85	2.07	2.03

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 been fluctuating over the past four years. The ratio indicates the level of debt relative to equity that the company is utilizing to finance its operations and growth.

The trend shows that the financial leverage ratio has been increasing from 1.81 in June 2022 to 4.02 in December 2022, indicating a significant increase in the company's debt relative to equity within a relatively short period. This sharp increase in leverage could suggest a more aggressive financing strategy or potential financial risks associated with a high level of debt.

Subsequently, the ratio decreased to 3.10 by the end of December 2023. This reduction may imply that the company has taken steps to reduce its debt levels or has increased its equity base during this period.

Overall, a higher financial leverage ratio signifies higher financial risk due to increased reliance on debt financing. It is essential for investors and stakeholders to closely monitor the company's leverage levels to ensure sustainable and healthy financial management.