Rambus Inc (RMBS)

Total asset 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
Total assets	US$ in thousands	1,343,140	1,251,570	1,250,620	1,208,840	1,258,230	1,184,330	1,127,120	962,630	1,012,590	969,056	1,110,910	1,060,880	1,232,650	1,202,670	1,152,980	1,235,780	1,251,410	1,309,020	1,316,650	1,325,390
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $556,624K ÷ $1,343,140K
= 0.41

Total asset turnover measures the efficiency with which a company utilizes its assets to generate sales. In the case of Rambus Inc, the total asset turnover has been showing an upward trend over the past few years, increasing from 0.18 in March 2020 to 0.41 in December 2024. This indicates that Rambus Inc has been able to generate more sales for every dollar of assets owned during this period.

The improving total asset turnover suggests that Rambus Inc has been able to boost its revenue generation relative to the size of its asset base. This could be attributed to various factors such as effective asset management, improved operational efficiency, and strategic investments. It also indicates that Rambus Inc is utilizing its assets more efficiently to drive sales growth, which could potentially lead to improved profitability and shareholder value in the long run.

Overall, the increasing trend in total asset turnover for Rambus Inc is a positive indicator of the company's operational efficiency and financial performance. It reflects a strong ability to convert its assets into revenue, which is essential for sustainable growth and competitiveness in the market.