ADEIA CORP (ADEA)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	136,230	146,206	121,731	138,729	153,060	136,784	158,629	155,369	119,028	381,671	325,221	276,041
Interest expense (ttm)	US$ in thousands	62,574	61,406	58,945	52,845	45,336	39,640	34,974	36,089	38,973	43,671	48,532	44,935
Interest coverage		2.18	2.38	2.07	2.63	3.38	3.45	4.54	4.31	3.05	8.74	6.70	6.14

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $136,230K ÷ $62,574K
= 2.18

The interest coverage ratio for ADEIA CORP has fluctuated over the past few quarters, indicating varying levels of ability to cover its interest expenses with its operating income.

In the most recent quarter, at December 31, 2023, the interest coverage ratio was 2.18, showing a slight decrease from the previous quarter at September 30, 2023, where it was 2.38. This decrease suggests that the company's operating income may have decreased relative to its interest expenses.

Looking further back, we see that the interest coverage ratio has been above 3 for most quarters, indicating a relatively healthy ability to cover interest costs. However, there was a notable increase in the ratio in the quarter ending March 31, 2021, where it spiked to 8.74, showing a significant improvement in the company's ability to cover its interest expenses at that time.

Overall, while the company's interest coverage has shown some fluctuations, it generally remains at levels that suggest the company can comfortably meet its interest obligations. It is important for stakeholders to continue monitoring this ratio to ensure the company's financial health and ability to manage its debt effectively.