Rambus Inc (RMBS)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	110,107	102,708	98,638	95,405	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
Inventory	US$ in thousands	44,634	48,905	52,596	47,599	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
Inventory turnover		2.47	2.10	1.88	2.00	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $110,107K ÷ $44,634K
= 2.47

The inventory turnover ratio of Rambus Inc has displayed fluctuations over the period under consideration. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times a company sells and replaces its inventory during a specific period.

From March 31, 2020, to June 30, 2022, the inventory turnover ratio generally showed a decreasing trend, suggesting a potential inefficiency in managing inventory during this period. However, starting from March 31, 2022, the ratio began to increase significantly, reaching its peak at 12.24 on March 31, 2022, indicating a substantial improvement in inventory management efficiency.

Subsequently, the ratio fluctuated, but generally maintained a downward trend from June 30, 2022, to December 31, 2024, albeit with some short-term increases. The decreasing trend suggests that Rambus Inc may have been carrying excess or obsolete inventory, impacting its ability to turn over inventory efficiently.

Overall, the inventory turnover ratio analysis indicates varying levels of effectiveness in managing inventory during different periods. It is important for Rambus Inc to closely monitor and adjust its inventory levels to ensure optimal efficiency in its operations and maximize profitability.