Rambus Inc (RMBS)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	110,107	103,422	107,579	70,394	60,748
Payables	US$ in thousands	18,522	18,074	24,815	11,279	8,993
Payables turnover		5.94	5.72	4.34	6.24	6.76

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $110,107K ÷ $18,522K
= 5.94

The payables turnover ratio measures how efficiently Rambus Inc is managing its accounts payable by calculating how many times the company pays its suppliers within a specific period. Looking at the data provided, the payables turnover for Rambus Inc has shown a fluctuating trend over the years.

- In 2020, the payables turnover ratio was 6.76, indicating that Rambus Inc was able to pay its suppliers approximately 6.76 times during the year.
- In 2021, the ratio decreased to 6.24, suggesting a slight decrease in the efficiency of paying off suppliers.
- By the end of 2022, the payables turnover ratio dropped further to 4.34, signaling a significant decrease in the company's ability to settle its payables promptly.
- However, in 2023, there was a slight improvement as the payables turnover ratio increased to 5.72, indicating a better payment efficiency compared to the previous year.
- By the end of 2024, the payables turnover ratio further improved to 5.94, reflecting a continued effort by Rambus Inc to manage its accounts payable more effectively.

Overall, it is essential for Rambus Inc to monitor and improve its payables turnover ratio consistently to ensure efficient cash flow management and maintain healthy supplier relationships.