Rambus Inc (RMBS)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	103,422	107,579	70,394	60,748	51,375
Payables	US$ in thousands	18,074	24,815	11,279	8,993	9,549
Payables turnover		5.72	4.34	6.24	6.76	5.38

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $103,422K ÷ $18,074K
= 5.72

The payables turnover ratio measures how efficiently a company is managing its accounts payable by showing how many times a company pays off its suppliers during a period.

Looking at Rambus Inc.'s payables turnover over the past five years, we observe fluctuations in the ratio. In 2019, the company had a payables turnover of 5.38, indicating that it paid off its suppliers approximately 5.38 times throughout the year.

In 2020, the ratio remained relatively stable at 4.83, suggesting that the company continued to manage its accounts payable effectively. However, in 2021, there was a notable increase in the payables turnover to 4.80, which may reflect a more efficient payment cycle during that year.

Further, in 2022, the payables turnover decreased to 3.77, indicating a potential slowdown in payments to suppliers or a change in the company's payment terms. The most recent data for 2023 show an improvement in the payables turnover ratio to 4.97.

Overall, the fluctuations in Rambus Inc.'s payables turnover ratio suggest varying payment patterns and efficiencies in managing its accounts payable over the past five years. Further analysis and comparison with industry benchmarks would provide more insights into the company's payables management practices.