Rambus Inc (RMBS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 556,624 | 461,117 | 454,793 | 328,304 | 246,322 |
| Total assets | US$ in thousands | 1,343,140 | 1,258,230 | 1,012,590 | 1,232,650 | 1,251,410 |
| Total asset turnover | 0.41 | 0.37 | 0.45 | 0.27 | 0.20 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $556,624K ÷ $1,343,140K
= 0.41
The total asset turnover ratio measures a company's ability to generate revenue from its total assets. Looking at the data provided for Rambus Inc, we can observe an increasing trend in the total asset turnover ratio over the years.
In December 2020, the total asset turnover ratio was 0.20, indicating that for every dollar of assets, the company generated 20 cents in revenue. By the end of December 2021, the ratio improved to 0.27, showing that the company was able to enhance its asset utilization to generate 27 cents of revenue for each dollar of assets.
The trend continued to improve in December 2022 with a total asset turnover ratio of 0.45, signifying a significant increase in the efficiency of Rambus Inc in utilizing its assets to generate revenue. However, there was a slight decrease in the ratio to 0.37 by December 2023, which suggests a potential decrease in the company's asset efficiency in generating revenue.
In the most recent year, December 2024, the total asset turnover ratio increased to 0.41, indicating that Rambus Inc improved its ability to generate revenue from its total assets compared to the previous year.
Overall, the increasing trend in the total asset turnover ratio from 2020 to 2024 suggests that Rambus Inc has been more effective in utilizing its assets to generate revenue over the years, demonstrating improved operational efficiency and management of assets.
Peer comparison
Dec 31, 2024