Rambus Inc (RMBS)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	227,603	234,431	231,022	224,549
Total current assets	US$ in thousands	630,645	550,625	536,465	492,763	527,214	474,177	581,146	545,112	684,364	624,759	678,985	724,336	699,712	725,034	707,796	678,756	664,679	656,449	640,904	545,012
Total current liabilities	US$ in thousands	89,121	84,196	101,444	96,174	126,709	116,431	161,444	168,402	267,267	95,175	81,426	80,402	85,864	90,882	83,458	80,063	86,179	88,293	84,424	69,276
Working capital turnover		0.85	0.99	1.08	1.18	1.14	1.19	0.94	0.95	0.79	0.56	0.46	0.39	0.40	0.39	0.40	0.41	0.39	0.41	0.42	0.47

December 31, 2023 calculation

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

The working capital turnover ratio of Rambus Inc. has shown fluctuation over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.

In Q1 2023, the working capital turnover ratio was 1.18, indicating that Rambus Inc. generated $1.18 in revenue for every dollar of working capital invested. This is a positive sign of efficiency, as the company is effectively utilizing its working capital to generate sales.

However, in Q2 2023, the ratio decreased to 1.08, suggesting a slight decrease in efficiency in utilizing working capital to generate revenue compared to the previous quarter. This trend continued in Q3 2023 with a ratio of 0.99, indicating further decline in working capital efficiency.

The ratio improved in Q4 2023 to 0.85, although it is still lower than the ratios observed in Q1 and Q2 2023. This could indicate that Rambus Inc. faced challenges in efficiently utilizing its working capital during the latter half of the year.

Overall, although there have been fluctuations in the working capital turnover ratio of Rambus Inc., the company has generally maintained a decent level of efficiency in utilizing its working capital to generate revenue. It is important for the company to closely monitor this ratio and take necessary steps to improve working capital management for sustainable growth and profitability.