Rambus Inc (RMBS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	461,117	454,793	328,304	246,322	227,603
Property, plant and equipment	US$ in thousands	67,808	86,300	56,035	57,700	45,500
Fixed asset turnover		6.80	5.27	5.86	4.27	5.00

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $461,117K ÷ $67,808K
= 6.80

The fixed asset turnover ratio for Rambus Inc. has exhibited fluctuating trends over the past five years. The ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.

In 2023, the fixed asset turnover ratio increased to 6.80, representing a significant improvement from the previous year. This indicates that Rambus Inc. was able to generate more sales revenue relative to its investment in fixed assets. The company may have optimized its asset utilization or experienced increased demand for its products and services.

In 2022, the fixed asset turnover ratio was 5.27, showing a decrease from the prior year. This could imply that Rambus Inc. was less effective in utilizing its fixed assets to generate revenue compared to the previous period. Potential reasons for this could include underutilization of assets or a decline in sales relative to fixed asset investments.

In 2021, the fixed asset turnover ratio stood at 5.86, demonstrating an improvement compared to 2020. This suggests that Rambus Inc. managed to enhance its efficiency in utilizing fixed assets to generate sales revenue during that period.

In 2020, the fixed asset turnover ratio was 4.27, indicating a lower level of efficiency in generating sales from fixed assets. The company may have faced challenges in optimizing asset utilization or experienced a decrease in sales relative to fixed asset investments.

In 2019, the fixed asset turnover ratio was 5.01, showing a moderate level of efficiency in converting fixed assets into sales revenue. The company may have effectively managed its asset utilization during that period.

Overall, Rambus Inc.'s fixed asset turnover ratio has exhibited fluctuations over the past five years, reflecting varying levels of efficiency in utilizing fixed assets to generate sales revenue. It is important for the company to continuously monitor and improve this ratio to ensure optimal utilization of its fixed assets and maximize revenue generation.