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.