Rambus Inc (RMBS)

Working capital 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 current assets	US$ in thousands	630,645	527,214	684,364	699,712	664,679
Total current liabilities	US$ in thousands	89,121	126,709	267,267	85,864	86,179
Working capital turnover		0.85	1.14	0.79	0.40	0.39

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $461,117K ÷ ($630,645K – $89,121K)
= 0.85

Rambus Inc.'s working capital turnover has fluctuated over the past five years. The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate revenue.

In 2023, the working capital turnover ratio was 0.85, which represents a decrease from the previous year's ratio of 1.14. This suggests that the company was less efficient in utilizing its working capital to generate revenue in 2023 compared to 2022.

Looking further back, in 2021 the working capital turnover ratio was 0.79, showing a slight decrease from the previous year. However, there was a significant improvement in 2020 with a ratio of 0.40, which was a substantial increase from 2019's ratio of 0.39.

Overall, the trend in Rambus Inc.'s working capital turnover ratio has been inconsistent, with fluctuations seen from year to year. It is important for the company to closely monitor its working capital management to ensure optimal efficiency in utilizing its resources to drive revenue generation.