Rambus Inc (RMBS)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	556,624	461,117	454,793	328,304	246,322
Property, plant and equipment	US$ in thousands	75,509	67,808	86,300	56,035	57,700
Fixed asset turnover		7.37	6.80	5.27	5.86	4.27

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $556,624K ÷ $75,509K
= 7.37

Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its fixed assets. Rambus Inc's fixed asset turnover has exhibited a positive trend over the past five years.

In December 2020, the fixed asset turnover was 4.27, indicating that Rambus generated $4.27 in revenue for every dollar invested in fixed assets. By December 2024, the fixed asset turnover had increased to 7.37, reflecting an improvement in the company's efficiency in utilizing its fixed assets to generate revenue.

The increasing trend in fixed asset turnover suggests that Rambus has been more effective in managing and utilizing its fixed assets to drive revenue growth. A higher fixed asset turnover ratio generally indicates better efficiency in asset utilization and potentially higher profitability. This trend is a positive indicator for investors and stakeholders, as it demonstrates Rambus's ability to maximize the productivity of its investments in fixed assets over the years.