Rambus Inc (RMBS)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	102,176	91,838	114,186	143,016
Short-term investments	US$ in thousands	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	305,488	246,186	223,532	162,850
Receivables	US$ in thousands	133,797	129,353	158,482	159,843	181,066	180,584	210,294	182,980	179,673	184,955	183,276	173,666	166,716	174,366	190,646	216,406	228,405	221,544	206,122	214,097
Total current liabilities	US$ in thousands	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	86,179	88,293	84,424	69,276
Quick ratio		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	7.38	6.34	6.44	7.51

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($94,767K + $331,077K + $133,797K) ÷ $89,121K
= 6.28

The quick ratio of Rambus Inc. demonstrates a consistent upward trend from Q1 2022 to Q4 2023, indicating an improving short-term liquidity position. The quick ratio, a measure of the company's ability to meet its short-term financial obligations with its most liquid assets, has increased steadily from 3.20 in Q1 2022 to 6.67 in Q4 2023.

This signifies that the company has significantly more liquid assets relative to its current liabilities in the most recent quarter compared to previous quarters. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations, and Rambus Inc. has consistently exceeded this threshold in the past eight quarters.

The increasing trend in the quick ratio suggests that Rambus Inc. has been effectively managing its short-term liquidity needs and may be better positioned to weather unexpected cash flow challenges. Investors and creditors typically view a higher quick ratio positively as it indicates a lower risk of default due to liquidity issues.