Rambus Inc (RMBS)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	446,517	357,695	347,214	257,910	185,574
Revenue	US$ in thousands	556,624	461,117	454,793	328,304	246,322
Gross profit margin		80.22%	77.57%	76.35%	78.56%	75.34%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $446,517K ÷ $556,624K
= 80.22%

Based on the data provided, Rambus Inc's gross profit margin has exhibited a positive trend over the years. The margin increased from 75.34% as of December 31, 2020, to 80.22% as of December 31, 2024. This indicates that the company has been effectively managing its cost of goods sold relative to its revenue, resulting in a higher proportion of revenue being retained as gross profit.

The company's ability to consistently improve its gross profit margin suggests efficient production processes, effective cost control measures, or possibly pricing strategies that have enhanced profitability. This trend is generally seen as a positive indicator of the company's operational efficiency and can be attractive to investors and stakeholders.

It is important for Rambus Inc to continue monitoring and maintaining its gross profit margin to ensure sustained profitability and competitiveness in the market. Additionally, comparing the company's gross profit margin with industry benchmarks and competitors can provide further insights into its performance and position within the industry.