Rambus Inc (RMBS)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 3.76 4.39 4.24 3.71 3.45 3.57 2.95 2.94 2.51 2.35 1.87 1.95 1.83 1.61 1.50 1.44 1.48 1.41 1.30 1.13
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
Working capital turnover 0.91 0.96 0.91 0.94 0.85 0.99 1.08 1.18 1.14 1.19 0.94 0.95 0.79 0.56 0.46 0.39 0.40 0.39 0.40 0.41

Rambus Inc's inventory turnover has shown a declining trend from 5.69 in March 2020 to 2.47 in December 2024, indicating a longer time to sell inventory. This may suggest inventory management inefficiencies or changing demand patterns.

On the other hand, the receivables turnover has been increasing steadily from 1.13 in March 2020 to 3.76 in December 2024, showing a more efficient collection of receivables over time. This indicates that the company is better at converting credit sales into cash.

The payables turnover ratio fluctuated but generally decreased from 3.56 in March 2020 to 5.94 in December 2024, suggesting that the company is taking longer to pay its suppliers. This could imply potential liquidity or cash flow challenges.

The working capital turnover ratio has varied but has generally shown an increasing trend from 0.41 in March 2020 to 0.91 in December 2024, indicating a more efficient utilization of working capital to generate sales. This improvement could suggest better management of the company's operating assets and liabilities.

Overall, Rambus Inc should focus on improving its inventory turnover and payables turnover ratios to enhance operational efficiency and manage liquidity effectively. The increasing receivables turnover and working capital turnover ratios reflect positive trends in the company's receivables management and working capital utilization.

Average number of days

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
Days of inventory on hand (DOH) days 147.96 173.80 194.63 182.10 127.60 112.12 105.82 81.77 70.91 56.22 40.44 29.82 43.98 44.64 46.69 58.23 86.92 83.87 71.26 64.12
Days of sales outstanding (DSO) days 96.97 83.17 86.14 98.40 105.91 102.36 123.55 124.26 145.32 155.38 195.19 187.10 199.76 226.21 244.08 252.62 247.04 258.56 280.12 322.41
Number of days of payables days 61.40 72.37 99.80 94.78 63.79 50.79 55.69 56.59 84.19 81.01 88.36 75.19 58.48 73.33 52.04 45.77 54.03 78.59 86.44 102.41

Rambus Inc's days of inventory on hand (DOH) fluctuated over the period under review, with a decreasing trend from March 31, 2023, to September 30, 2023, followed by a significant increase up to December 31, 2024. This indicates inefficiencies in managing inventory levels and potential risks associated with excess inventory on hand.

In terms of days of sales outstanding (DSO), Rambus Inc showed a decreasing trend from March 31, 2020, to December 31, 2022, signaling an improvement in its accounts receivable collection efficiency. However, there was a slight increase from December 31, 2022, to December 31, 2024, suggesting a potential delay in collecting payments from customers.

The number of days of payables also varied during the period, with fluctuations in payment terms and management of trade payables. Notably, there was an increase in days of payables up to June 30, 2022, followed by a decline until September 30, 2023, and then fluctuating levels until December 31, 2024. This may indicate changes in the company's relationships with suppliers and its working capital management practices.

Overall, Rambus Inc's activity ratios reflect variability in its inventory management, accounts receivable collection, and payables terms over the period, highlighting the importance of closely monitoring and optimizing these aspects for improved operational efficiency and cash flow management.

Long-term

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
Fixed asset turnover 7.37 7.06 6.37 6.92 6.80 6.28 5.37 5.25 5.27 5.40 4.81 6.49 5.86 5.79 5.48 4.67 4.27 4.14 4.88 5.09
Total asset turnover 0.41 0.41 0.38 0.38 0.37 0.39 0.42 0.49 0.45 0.44 0.35 0.34 0.27 0.25 0.24 0.20 0.20 0.19 0.19 0.18

Rambus Inc's fixed asset turnover ratio has shown fluctuation over the years, ranging from a low of 4.14 in September 2020 to a high of 7.37 in December 2024. This ratio measures the efficiency of the company in generating sales from its investment in fixed assets like property, plant, and equipment.

On the other hand, Rambus Inc's total asset turnover has generally shown an increasing trend, indicating that the company has become more efficient in generating revenue from its total assets. The ratio increased from 0.18 in March 2020 to 0.41 in December 2024.

Overall, both ratios suggest that Rambus Inc has been effectively utilizing its assets to generate revenue, with the total asset turnover showing a more consistent improvement over the period compared to the fixed asset turnover. This indicates improved operational efficiency and effectiveness in managing the company's assets to drive sales growth.