Rambus Inc (RMBS)

Inventory 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
Cost of revenue (ttm) US$ in thousands 103,422 112,690 115,642 116,856 107,579 91,933 83,375 75,441 70,394 66,107 62,945 62,215 60,748 61,873 59,183 56,062 51,375 61,337 54,715 52,777
Inventory US$ in thousands 36,154 34,615 33,527 26,180 20,900 14,161 9,238 6,164 8,482 8,085 8,052 9,926 14,466 14,218 11,554 9,848 10,086 9,854 9,326 8,192
Inventory turnover 2.86 3.26 3.45 4.46 5.15 6.49 9.03 12.24 8.30 8.18 7.82 6.27 4.20 4.35 5.12 5.69 5.09 6.22 5.87 6.44

December 31, 2023 calculation

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

Rambus Inc.'s inventory turnover has exhibited a decreasing trend over the past eight quarters, suggesting potential inefficiencies in managing its inventory levels. The company's inventory turnover ratio decreased from a high of 9.77 in Q1 2022 to 2.49 in Q4 2023. This indicates that Rambus has been holding onto its inventory for a longer period before selling it.

A declining inventory turnover ratio may signal excess inventory levels, slow-moving inventory, or difficulties in aligning production with sales demand. It may also indicate potential liquidity issues if excess inventory ties up working capital.

Rambus should closely evaluate its inventory management practices to optimize its inventory turnover and ensure efficient utilization of its resources. This could involve assessing demand forecasting, streamlining production processes, renegotiating supplier agreements, or implementing just-in-time inventory systems to address any inefficiencies and enhance overall operational performance.


Peer comparison

Dec 31, 2023

Dec 31, 2023