Rambus Inc (RMBS)

Cash ratio

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
Cash and cash equivalents US$ in thousands 99,774 113,980 124,580 112,614 94,767 131,958 122,189 99,876 125,338 141,559 171,460 179,129 107,891 151,871 204,731 109,554 128,967 89,475 103,275 175,446
Short-term investments US$ in thousands 382,023 318,717 308,306 278,443 331,077 243,588 210,437 192,261 187,892 123,289 180,175 164,562 377,718 267,857 272,382 419,574 373,682 430,746 382,802 259,999
Total current liabilities US$ in thousands 81,812 74,127 85,034 82,607 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
Cash ratio 5.89 5.84 5.09 4.73 4.78 4.46 3.28 3.04 2.47 2.27 2.18 2.04 1.82 4.41 5.86 6.58 5.85 5.72 5.82 5.44

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 some fluctuations over the analyzed periods. The cash ratio measures the company's ability to cover its short-term obligations using its cash and cash equivalents.

From March 31, 2020, to June 30, 2020, the cash ratio improved from 5.44 to 5.82, indicating an increase in the company's ability to cover its short-term liabilities with cash. However, the ratio slightly decreased to 5.72 by September 30, 2020.

There was a notable improvement in the cash ratio by December 31, 2020, reaching 5.85. The trend continued to March 31, 2021, where the cash ratio surged to 6.58, signaling a strengthening liquidity position.

However, the cash ratio declined by June 30, 2021, dropping to 5.86, and further decreased to 4.41 by September 30, 2021. This substantial drop might indicate potential liquidity challenges for the company during this period.

The company made some improvements in its cash ratio by December 31, 2021, reaching 1.82. This improvement continued into the following quarters, with the cash ratio gradually increasing to 5.09 by June 30, 2024, and further to 5.89 by December 31, 2024.

Overall, Rambus Inc's cash ratio has fluctuated during the analyzed periods, showing improvements in some quarters and declines in others. The company's ability to cover its short-term obligations with cash and cash equivalents has varied over time, impacting its liquidity position. Monitoring this ratio is crucial for assessing the company's financial health and its ability to meet its short-term obligations.