Rambus Inc (RMBS)

Working capital 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 current assets	US$ in thousands	690,257	630,645	527,214	684,364	699,712
Total current liabilities	US$ in thousands	81,812	89,121	126,709	267,267	85,864
Working capital turnover		0.91	0.85	1.14	0.79	0.40

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $556,624K ÷ ($690,257K – $81,812K)
= 0.91

The working capital turnover ratio for Rambus Inc has shown variation over the years, indicating changes in the efficiency of the company's operations in utilizing its working capital to generate sales revenue.

In December 2020, the working capital turnover ratio was 0.40, indicating that the company generated 0.40 times of sales revenue per dollar of working capital invested. The relatively low ratio suggests inefficiency in the management of working capital during that period.

By December 2021, the ratio improved significantly to 0.79, reflecting a better utilization of working capital to generate sales revenue. This could signify enhanced operational efficiency or tighter control over working capital components.

In 2022, the working capital turnover ratio further increased to 1.14, indicating a more effective utilization of working capital in generating sales. This substantial improvement suggests increased sales revenue generated per unit of working capital, potentially indicative of improved operational performance.

However, there was a slight decline in the ratio to 0.85 by December 2023, suggesting a potential dip in the efficiency of working capital management compared to the previous year. This might signal challenges in optimizing the use of working capital to drive sales during the period.

By December 2024, the ratio increased to 0.91, indicating a slight improvement in the efficiency of working capital turnover compared to the previous year. While the ratio is higher than in 2023, it still falls below the peak achieved in 2022.

Overall, the trend in the working capital turnover ratio for Rambus Inc indicates fluctuations in the company's efficiency in utilizing working capital to generate sales revenue over the years, reflecting varying degrees of operational performance and financial management.