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