Rambus Inc (RMBS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.47	2.86	5.15	8.30	4.20
DOH	days	147.96	127.60	70.91	43.98	86.92

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.47
= 147.96

The days of inventory on hand (DOH) for Rambus Inc has fluctuated over the past five years. In December 2020, the company had an inventory turnover of 86.92 days, indicating that it took nearly three months to sell its inventory. By December 2021, the DOH decreased significantly to 43.98 days, suggesting a more efficient management of inventory.

However, there was an uptick in the DOH to 70.91 days by December 2022, indicating a slight increase in the time taken to sell inventory. This trend escalated notably in the following years, with the DOH reaching 127.60 days by December 2023 and 147.96 days by December 2024. These elevated figures suggest that Rambus Inc may be facing challenges in managing its inventory efficiently, potentially leading to increased carrying costs or obsolescence risk.

Overall, the increasing trend in the days of inventory on hand for Rambus Inc over the past few years signifies a potential area of concern that may warrant further investigation into the company's inventory management practices and operational strategies.