Rambus Inc (RMBS)

Receivables 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
Revenue (ttm)	US$ in thousands	556,624	517,747	477,532	465,226	461,117	461,259	468,205	469,505	454,793	424,207	393,245	356,972	328,304	298,436	274,069	250,927	246,322	246,144	248,416	244,996
Receivables	US$ in thousands	147,883	117,976	112,703	125,424	133,797	129,353	158,482	159,843	181,066	180,584	210,294	182,980	179,673	184,955	183,276	173,666	166,716	174,366	190,646	216,406
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $556,624K ÷ $147,883K
= 3.76

The receivables turnover ratio for Rambus Inc has shown a fluctuating trend over the years, reflecting the efficiency with which the company is collecting its accounts receivable.

Initially, the ratio was relatively low at around 1.13 in March 2020, indicating that it took the company around 1.13 times during that period to collect its accounts receivable.

Over the following quarters, this ratio gradually increased, indicating an improvement in the collection of receivables. By December 2021, the ratio had reached 1.83, suggesting that the company was collecting its outstanding receivables more frequently.

However, there were some fluctuations in the ratio in the subsequent periods, reaching a peak of 4.39 in September 2024. This significant increase may imply that Rambus Inc improved its credit control procedures or had more efficient collection processes during that period.

Overall, the increasing trend in the receivables turnover ratio over the years is a positive indicator of the company's effectiveness in managing its accounts receivable and converting them into cash.