Rambus Inc (RMBS)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	333,904	-14,310	18,334	-40,471	-85,964
Revenue	US$ in thousands	461,117	454,793	328,304	246,322	227,603
Net profit margin		72.41%	-3.15%	5.58%	-16.43%	-37.77%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $333,904K ÷ $461,117K
= 72.41%

The net profit margin of Rambus Inc. has exhibited significant fluctuations over the past five years. In 2023, the net profit margin surged to an impressive 72.41%, signaling a substantial increase in profitability compared to the previous years. This improvement may indicate enhanced operational efficiency, cost management, or revenue generation strategies implemented by the company.

The negative net profit margins in 2022 (-3.15%), 2020 (-16.43%), and 2019 (-40.36%) are concerning as they suggest that the company's expenses exceeded its revenues during those periods, resulting in losses. These negative margins could be attributed to various factors such as declining sales, high operating costs, non-recurring expenses, or impairment charges.

The net profit margin of 5.58% in 2021 reflects a moderate level of profitability, indicating that the company was able to generate a reasonable profit relative to its revenues during that year. Overall, the fluctuating trend in Rambus Inc.'s net profit margin highlights the importance of closely monitoring and managing expenses and revenues to sustain profitability and financial health.