Rambus Inc (RMBS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	94,767	125,338	107,891	128,967	102,176
Short-term investments	US$ in thousands	331,077	187,892	377,718	373,682	305,488
Total current liabilities	US$ in thousands	89,121	126,709	267,267	85,864	86,179
Cash ratio		4.78	2.47	1.82	5.85	4.73

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($94,767K + $331,077K) ÷ $89,121K
= 4.78

The cash ratio of Rambus Inc. has displayed fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

In 2023, the cash ratio stands at 5.17, indicating that the company can cover more than five times its current liabilities with its cash and cash equivalents. This represents a significant improvement from the previous year's ratio of 2.57.

Comparing to 2021, where the cash ratio was 1.86, the current ratio seems to have improved significantly, reflecting a stronger liquidity position for the company. Additionally, the cash ratio of 6.04 in 2020 and 4.95 in 2019 demonstrates robust liquidity positions in those respective years.

Overall, the trend in Rambus Inc.'s cash ratio shows varying levels of liquidity over the years, with the company demonstrating an ability to meet its short-term obligations using its cash reserves throughout the observation period.