ADEIA CORP (ADEA)

Solvency ratios

	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	0.47	0.51	0.53	0.53	0.51	0.35	0.29	0.29	0.30	0.29	0.29	0.30	0.29	0.36	0.35
Debt-to-capital ratio	0.59	0.63	0.65	0.65	0.67	0.43	0.34	0.35	0.35	0.35	0.34	0.35	0.35	0.43	0.42
Debt-to-equity ratio	1.46	1.68	1.83	1.89	2.06	0.76	0.52	0.53	0.54	0.54	0.52	0.54	0.55	0.74	0.71
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

The solvency ratios of ADEIA CORP indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

1. Debt-to-assets ratio:
- The trend shows a fluctuation in the debt-to-assets ratio, ranging from 0.29 to 0.53 over the past year.
- This ratio indicates that, on average, around 29% to 53% of the company's assets are financed by debt.
- The recent increase in the ratio may suggest higher reliance on debt to fund the company's operations.

2. Debt-to-capital ratio:
- The debt-to-capital ratio demonstrates a similar fluctuating pattern as the debt-to-assets ratio, with values ranging from 0.34 to 0.67.
- This ratio shows that, on average, between 34% and 67% of the company's capital structure is comprised of debt.
- The increasing trend in this ratio signifies a growing proportion of debt in the company's capital, potentially indicating higher financial risk.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has exhibited significant variability over the past year, ranging from 0.52 to 2.06.
- This ratio reveals the company's reliance on debt relative to shareholders' equity, with values indicating that debt has accounted for 52% to 206% of the equity in the company.
- The recent trend of increasing values in this ratio may signal a higher level of financial leverage and potential risk for investors and creditors.

4. Financial leverage ratio:
- The financial leverage ratio has also shown fluctuations, varying from 1.81 to 4.02 over the past year.
- This ratio reflects the company's overall level of financial risk and the extent to which it relies on debt to support its operations.
- The increasing trend in this ratio suggests a higher degree of financial leverage and potential vulnerability in meeting debt obligations.

In conclusion, the solvency ratios of ADEIA CORP indicate a mixed trend with fluctuations in the levels of debt relative to assets, capital, equity, and overall leverage. Investors and creditors should carefully monitor these ratios to assess the company's long-term financial stability and risk exposure.

Coverage ratios

	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	2.18	2.38	2.07	2.63	3.38	3.45	4.54	4.31	3.05	8.74	6.70	6.14

The interest coverage ratio of ADEIA CORP has shown some variability over the past few quarters. The ratio measures the company's ability to cover its interest expenses with its operating income.

In the most recent quarter, as of December 31, 2023, the interest coverage ratio was 2.18, indicating that the company generated operating income 2.18 times its interest expenses. This suggests a moderate ability to meet its interest obligations from its operational earnings.

The trend over the past year shows some fluctuations, with the ratio ranging from a low of 2.07 in June 2023 to a high of 8.74 in September 2021. Generally, higher interest coverage ratios indicate a stronger ability to cover interest expenses and are considered a positive sign of financial health.

It is important for stakeholders to monitor the interest coverage ratio over time to ensure the company can continue to meet its debt obligations and remain financially stable.