Rambus Inc (RMBS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 8.44 | 8.26 | 7.18 | 6.98 | 7.08 | 6.54 | 5.29 | 5.12 | 4.16 | 4.07 | 3.60 | 3.24 | 2.56 | 6.56 | 8.34 | 9.01 | 8.15 | 7.98 | 8.48 | 8.48 |
| Quick ratio | 7.70 | 7.43 | 6.42 | 6.25 | 6.28 | 6.00 | 4.84 | 4.70 | 3.90 | 3.83 | 3.48 | 3.13 | 2.49 | 6.35 | 8.11 | 8.74 | 7.80 | 7.64 | 8.11 | 8.14 |
| 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 |
The current ratio of Rambus Inc, which measures its short-term liquidity position, has shown fluctuation over the years. The ratio was consistently high, above 8, from March 2020 to June 2022, indicating strong ability to meet short-term obligations. However, from September 2022 to December 2024, the current ratio decreased gradually, dropping to a low of 2.56 in December 2021 before increasing to 8.44 by December 2024. This suggests some variability in the company's ability to cover its current liabilities with current assets, but a rebound in its liquidity position towards the end of the analyzed period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, mirrors the trend of the current ratio. It also experienced volatility during the period under review, remaining relatively high above 7 until June 2021, before declining to a low of 2.49 in December 2021. Similar to the current ratio, the quick ratio improved towards the end of the period, reaching 7.70 by December 2024.
The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, displays a similar pattern to the current and quick ratios. The ratio was relatively stable around 5 from March 2020 to June 2021, before decreasing to 1.82 in December 2021. Subsequently, there was a gradual recovery in the cash ratio, climbing back to 5.89 by December 2024.
Overall, Rambus Inc's liquidity ratios demonstrate some variability over the years, with a noticeable decline in liquidity around late 2021 followed by a recovery in subsequent periods. The company should continue to monitor its liquidity position to ensure it can meet short-term obligations efficiently.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Rambus Inc has shown fluctuations over the periods provided in the data. Initially, the company had a relatively higher cash conversion cycle, which decreased over time, indicating improvements in its cash management efficiency.
From March 31, 2020, to December 31, 2021, there was a decreasing trend in the cash conversion cycle, reaching its lowest point at 185.25 days. This suggests that Rambus Inc was able to efficiently convert its investments in inventory and accounts receivable into cash during this period.
However, from March 31, 2022, to December 31, 2024, the cash conversion cycle showed some fluctuations, varying between 130.59 days and 185.72 days. While there was an overall increase compared to the previous period, the company still managed to maintain its cash conversion cycle at a reasonable level, indicating a stable liquidity position.
The increasing trend towards the end of the data may warrant closer monitoring to ensure that Rambus Inc maintains efficient cash management practices in the future. Overall, a lower cash conversion cycle indicates that the company is able to generate cash more quickly from its operating activities, which can be a positive sign for its financial health.