Rambus Inc (RMBS)

Days of inventory on hand (DOH)

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		2.47	2.10	1.88	2.00	2.86	3.26	3.45	4.46	5.15	6.49	9.03	12.24	8.30	8.18	7.82	6.27	4.20	4.35	5.12	5.69
DOH	days	147.96	173.80	194.63	182.10	127.60	112.12	105.82	81.77	70.91	56.22	40.44	29.82	43.98	44.64	46.69	58.23	86.92	83.87	71.26	64.12

December 31, 2024 calculation

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

Days of inventory on hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before it is sold. A lower DOH value generally indicates efficient inventory management, while a higher DOH value suggests slower inventory turnover.

Analyzing the DOH trend of Rambus Inc from March 31, 2020, to December 31, 2024, reveals fluctuating performance. The company's DOH started at 64.12 days in March 2020, peaked at 182.10 days in March 2024, and then decreased to 147.96 days by December 2024.

From 2020 to 2022, Rambus Inc managed to lower its DOH steadily, reaching a low of 29.82 days in March 2022, indicating efficient inventory turnover during this period. However, from 2022 onwards, the DOH began to increase significantly, peaking at 194.63 days in June 2024 before decreasing slightly to 147.96 days by December 2024.

The increasing trend in DOH from 2022 suggests that Rambus Inc may be experiencing challenges in managing its inventory efficiently, which could lead to excess inventory levels and potential liquidity issues. It is crucial for the company to closely monitor its inventory levels and implement strategies to optimize inventory management to improve its financial performance and operational efficiency.