Rambus Inc (RMBS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 99,774 | 94,767 | 125,338 | 107,891 | 128,967 |
| Short-term investments | US$ in thousands | 382,023 | 331,077 | 187,892 | 377,718 | 373,682 |
| Total current liabilities | US$ in thousands | 81,812 | 89,121 | 126,709 | 267,267 | 85,864 |
| Cash ratio | 5.89 | 4.78 | 2.47 | 1.82 | 5.85 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,774K
+ $382,023K)
÷ $81,812K
= 5.89
The cash ratio of Rambus Inc has shown fluctuations over the years.
- As of December 31, 2020, the cash ratio was 5.85, indicating that the company had $5.85 in cash and cash equivalents for every dollar of current liabilities. This was a strong position, suggesting the company had ample liquidity to meet its short-term obligations.
- By December 31, 2021, the cash ratio had decreased to 1.82, which may be a cause for concern as it implies a significant reduction in liquidity. A lower cash ratio means the company may be less capable of covering its current liabilities with its available cash and cash equivalents.
- However, the cash ratio improved to 2.47 by December 31, 2022, signaling a recovery in the company's liquidity position. This increase suggests that Rambus Inc may have bolstered its cash reserves relative to its current liabilities.
- Over the next two years, the cash ratio continued to strengthen, reaching 4.78 as of December 31, 2023, and further increasing to 5.89 by December 31, 2024. These improvements indicate that Rambus Inc has enhanced its liquidity position significantly, with a higher ability to settle its short-term obligations using its available cash resources.
In conclusion, while there were fluctuations in Rambus Inc's cash ratio over the years, the company managed to strengthen its liquidity position substantially by the end of the period. This trend suggests a positive development in the company's ability to meet its short-term liabilities with its cash and cash equivalents.
Peer comparison
Dec 31, 2024