ADEIA CORP (ADEA)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.41	0.46	0.48	0.47	0.47	0.51	0.53	0.53	0.51	0.35	0.29	0.29	0.30	0.29	0.29	0.30
Debt-to-capital ratio	0.53	0.57	0.59	0.59	0.59	0.63	0.65	0.65	0.67	0.43	0.34	0.35	0.35	0.35	0.34	0.35
Debt-to-equity ratio	1.15	1.32	1.42	1.46	1.46	1.68	1.83	1.89	2.06	0.76	0.52	0.53	0.54	0.54	0.52	0.54
Financial leverage ratio	2.77	2.86	2.98	3.08	3.10	3.27	3.48	3.58	4.02	2.18	1.81	1.82	1.83	1.83	1.79	1.83

Based on the solvency ratios of ADEIA CORP, it is evident that the company's debt levels relative to its assets and capital have fluctuated over the period analyzed.

The Debt-to-assets ratio has shown a slight increase from 0.29 in June 2022 to a peak of 0.53 in March 2024. This indicates a higher proportion of the company's assets being financed by debt towards the end of the period.

Similarly, the Debt-to-capital ratio followed a similar trend, increasing from 0.34 in June 2022 to 0.59 by June 2024. This suggests that a larger portion of the company's capital structure was supported by debt in the later years of the period.

The Debt-to-equity ratio exhibited a more pronounced increase, rising from 0.52 in June 2021 to 1.15 by December 2024. This indicates a significant increase in the company's reliance on debt financing relative to equity over the period.

Lastly, the Financial leverage ratio shows a notable escalation from 1.81 in June 2022 to 2.77 by December 2024. This indicates an increasing level of financial risk as the company's debt levels have risen substantially compared to its equity.

Overall, the trend across all solvency ratios highlights a notable increase in ADEIA CORP's leverage and debt burden over the period, which may raise concerns about the company's ability to meet its financial obligations and manage its debt levels effectively in the future.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	2.45	1.70	1.82	1.65	2.18	2.38	2.07	2.63	3.38	3.45	4.54	4.31	3.05	8.74	6.70	6.14

ADEIA CORP's interest coverage ratio has shown fluctuating trends over the past few years. The ratio decreased from 6.14 as of March 31, 2021, to 2.63 as of March 31, 2023. This indicates a potential decline in the company's ability to cover its interest expenses with operating income.

Although there was a slight increase to 4.54 as of June 30, 2022, and 3.45 as of September 30, 2022, the ratio dropped again to 1.65 as of March 31, 2024, before slightly recovering to 2.45 as of December 31, 2024.

Overall, the downward trend in the interest coverage ratio suggests that ADEIA CORP may be facing challenges in meeting its interest obligations using its operating income. This could raise concerns about the company's financial stability and ability to service its debt effectively in the long term. Further analysis and monitoring of the company's financial performance and debt management strategies are advisable to address these potential issues.