Rambus Inc (RMBS)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		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	5.09	6.22	5.87	6.44
DOH	days	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	71.66	58.64	62.21	56.65

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.86
= 127.60

The days of inventory on hand (DOH) for Rambus Inc. has shown an increasing trend over the past eight quarters. In Q4 2023, the company had 146.79 days of inventory on hand, which was significantly higher compared to the previous quarters. This may indicate that the company is holding onto inventory for a longer period of time before it is sold.

The trend of increasing DOH could suggest potential inefficiencies in inventory management, as higher DOH levels tie up working capital in unsold goods. This could lead to increased carrying costs and potentially lower profitability if the inventory becomes obsolete or loses value over time.

It is important for Rambus Inc. to closely monitor and potentially optimize its inventory management practices to ensure that inventory levels are in line with sales demand and industry standards. This could help improve liquidity, reduce carrying costs, and enhance overall operational efficiency.