Rambus Inc (RMBS)
Total asset 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 |
| Total assets | US$ in thousands | 1,258,230 | 1,012,590 | 1,232,650 | 1,251,410 | 1,338,990 |
| Total asset turnover | 0.37 | 0.45 | 0.27 | 0.20 | 0.17 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $461,117K ÷ $1,258,230K
= 0.37
The trend in Rambus Inc.'s total asset turnover over the past five years shows fluctuations with some varying degrees of effectiveness in utilizing its total assets to generate revenue. The total asset turnover ratio indicates the company's ability to generate sales from its assets. A higher total asset turnover ratio is generally preferred as it signifies that the company is efficiently using its assets to generate revenue.
In this case, Rambus Inc.'s total asset turnover ratio has shown some improvement from 0.17 in 2019 to 0.37 in 2023. The company's ability to generate sales from its total assets has increased over this period. However, it is important to note that the ratio decrease in 2021, followed by an increase in 2022 and 2023, indicates some fluctuations in asset efficiency.
Overall, the upward trend in total asset turnover ratio from 2019 to 2023 suggests that Rambus Inc. has been able to improve its efficiency in utilizing its assets to generate sales. Continued monitoring of this ratio will be important to assess the company's ongoing efficiency in asset utilization and revenue generation.
Peer comparison
Dec 31, 2023