Rambus Inc (RMBS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	147.96	173.80	194.63	182.10	127.60	112.12	105.82	81.77	70.91	56.22	40.44	29.82	43.98	44.64	46.69	58.23	86.92	83.87	71.26	64.12
Days of sales outstanding (DSO)	days	96.97	83.17	86.14	98.40	105.91	102.36	123.55	124.26	145.32	155.38	195.19	187.10	199.76	226.21	244.08	252.62	247.04	258.56	280.12	322.41
Number of days of payables	days	61.40	72.37	99.80	94.78	63.79	50.79	55.69	56.59	84.19	81.01	88.36	75.19	58.48	73.33	52.04	45.77	54.03	78.59	86.44	102.41
Cash conversion cycle	days	183.53	184.59	180.97	185.72	169.72	163.68	173.68	149.45	132.03	130.59	147.27	141.73	185.25	197.52	238.73	265.08	279.92	263.84	264.93	284.11

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 147.96 + 96.97 – 61.40
= 183.53

The cash conversion cycle of Rambus Inc has varied over the past few years, reflecting changes in its efficiency in managing its working capital. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, Rambus Inc's cash conversion cycle has fluctuated significantly. It started at 284.11 days in March 2020 and decreased to a low of 130.59 days in September 2022, indicating an improvement in the company's ability to turn its resources into cash more quickly.

However, the cash conversion cycle increased again to 185.72 days by March 31, 2024. This rise suggests a potential slowdown in the company's cash generation process, possibly due to changes in inventory management, accounts receivable collection, or payment terms with suppliers.

Overall, Rambus Inc should aim to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its working capital and improve its overall financial performance.