Rambus Inc (RMBS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	461,117	461,259	468,205	469,505	454,793	424,207	393,245	356,972	328,304	298,436	274,069	250,927	246,322	246,144	248,416	244,996	227,603	234,431	231,022	224,549
Property, plant and equipment	US$ in thousands	67,808	73,466	87,167	89,393	86,300	78,563	81,735	54,965	56,035	51,516	50,058	53,687	57,700	59,425	50,858	48,154	45,500	38,571	41,590	22,637
Fixed asset turnover		6.80	6.28	5.37	5.25	5.27	5.40	4.81	6.49	5.86	5.79	5.48	4.67	4.27	4.14	4.88	5.09	5.00	6.08	5.55	9.92

December 31, 2023 calculation

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

Fixed asset turnover is a key financial ratio that measures how efficiently a company generates sales revenue from its investment in fixed assets.

Analyzing the fixed asset turnover of Rambus Inc. over the past eight quarters, we observe fluctuating trends. In Q4 2023, the fixed asset turnover ratio stood at 6.80, indicating that Rambus Inc. generated $6.80 in sales for every dollar invested in fixed assets during that period. This was an improvement compared to the previous quarter where the ratio was 6.28.

Despite the variability, Rambus Inc. has generally maintained a relatively high fixed asset turnover over the past two years, with ratios consistently above 5. This suggests that the company effectively utilizes its fixed assets to drive sales revenue.

The highest fixed asset turnover ratio was recorded in Q1 2022 at 6.49, indicating a peak in asset efficiency during that period. In contrast, the lowest ratio of 4.81 was observed in Q2 2022, signaling a temporary decrease in asset utilization efficiency.

Overall, Rambus Inc. exhibits a favorable trend in fixed asset turnover, showcasing its ability to efficiently generate sales from its investment in fixed assets. Continuous monitoring of this ratio will be essential to track the company's operational efficiency and asset utilization in the future.