Rambus Inc (RMBS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	556,624	517,747	477,532	465,226	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
Property, plant and equipment	US$ in thousands	75,509	73,374	74,916	67,277	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
Fixed asset turnover		7.37	7.06	6.37	6.92	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

December 31, 2024 calculation

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

Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets. Looking at the data provided for Rambus Inc, we observe fluctuations in the fixed asset turnover ratio over time.

The trend shows that the fixed asset turnover ratio has generally increased from March 31, 2020, to December 31, 2024, with some fluctuations along the way. The ratio started at 5.09 on March 31, 2020, and gradually increased to 7.37 by December 31, 2024, indicating an improvement in the company's efficiency in generating revenue from its fixed assets.

However, there are some periods where the ratio dropped slightly, such as on December 31, 2022, reaching 5.27, before picking up again in the following quarters. This could be attributed to changes in the company's operations, investments in new fixed assets, or fluctuations in revenue generation during those periods.

Overall, the increasing trend in Rambus Inc's fixed asset turnover ratio suggests that the company has been managing its fixed assets effectively to drive revenue growth over the analyzed period.