Rambus Inc (RMBS)

Payables 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
Payables	US$ in thousands	18,522	20,365	26,970	24,775	18,074	15,682	17,643	18,117	24,815	20,405	20,183	15,540	11,279	13,281	8,975	7,802	8,993	13,323	14,016	15,730
Payables turnover		5.94	5.04	3.66	3.85	5.72	7.19	6.55	6.45	4.34	4.51	4.13	4.85	6.24	4.98	7.01	7.97	6.76	4.64	4.22	3.56

December 31, 2024 calculation

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

The payables turnover ratio for Rambus Inc shows the efficiency of the company in managing its accounts payable. It is calculated by dividing the total purchases made by the average accounts payable for a specific period.

Analyzing the data provided, we can see that the payables turnover ratio has fluctuated over the years. The ratio was relatively stable between March 2020 and March 2021, ranging from 3.56 to 7.97. This indicates that the company was able to turn over its payables efficiently during this period.

However, there was a notable decrease in the payables turnover ratio in the following quarters, dropping to around 4.13 to 4.85 by June 2022. This could suggest a slowdown in the company's ability to manage its payables effectively.

The ratio showed some improvement in the later quarters of 2022 and early 2023, reaching 7.19 in September 2023. This could indicate that the company became more efficient in paying its suppliers during this period.

Towards the end of 2023 and throughout 2024, the payables turnover ratio started to decline again, ranging from 3.66 to 5.94. This downward trend might imply that the company faced challenges in managing its accounts payable efficiently during these periods.

In conclusion, the analysis of Rambus Inc's payables turnover ratio reflects fluctuations in the company's ability to manage its payables efficiently over the years, highlighting both strengths and potential areas for improvement.