Rambus Inc (RMBS)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	103,422	107,579	70,394	60,748	51,375
Inventory	US$ in thousands	36,154	20,900	8,482	14,466	10,086
Inventory turnover		2.86	5.15	8.30	4.20	5.09

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $103,422K ÷ $36,154K
= 2.86

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replenishes its inventory within a specific period. For Rambus Inc., there has been fluctuation in their inventory turnover ratio over the past five years.

In 2023, the inventory turnover ratio was 2.49, indicating that the company sold and restocked its inventory approximately 2.49 times during the year. This represents a decrease from the previous year's ratio of 4.48 in 2022, suggesting a decrease in the efficiency of managing inventory.

Looking back further, in 2021, the inventory turnover ratio was relatively high at 6.38, suggesting that the company efficiently turned over its inventory almost six and a half times during the year. This indicates effective management of inventory in that year.

In contrast, in 2020, the inventory turnover ratio was 3.00, indicating a decrease in efficiency compared to the preceding year. However, in 2019, the ratio improved to 5.09, showing a higher turnover of inventory compared to 2020.

Overall, Rambus Inc.'s inventory turnover has shown variability over the past five years, with some years indicating efficient management of inventory (e.g., 2021 and 2019), while other years showing a slowdown in inventory turnover (e.g., 2023 and 2020). Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's overall operational efficiency and inventory management practices.