Rambus Inc (RMBS)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	461,117	454,793	328,304	246,322	227,603
Receivables	US$ in thousands	133,797	181,066	179,673	166,716	228,405
Receivables turnover		3.45	2.51	1.83	1.48	1.00

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $461,117K ÷ $133,797K
= 3.45

The receivables turnover ratio for Rambus Inc. has shown a consistent upward trend over the past five years, indicating an improvement in the company's efficiency in collecting its accounts receivable.

In 2019, the receivables turnover ratio was 0.98, which means that Rambus collected its accounts receivable approximately once a year. This figure increased to 1.48 in 2020, showing a significant improvement in the company's ability to collect receivables.

The ratio continued to increase in the following years, reaching 1.83 in 2021 and further increasing to 2.51 in 2022. This suggests that Rambus was able to collect its accounts receivable more frequently, indicating a shorter average collection period.

By the end of 2023, the receivables turnover ratio had increased to 3.45, highlighting a substantial improvement in the efficiency of Rambus's accounts receivable management. This implies that the company was able to convert its accounts receivable into cash more rapidly, which is a positive sign for its liquidity and overall financial health.

Overall, the increasing trend in Rambus Inc.'s receivables turnover ratio over the five-year period reflects the company's efforts to optimize its working capital management and enhance its cash flow by efficiently collecting outstanding receivables.