Rambus Inc (RMBS)

Net profit margin

		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
Net income (ttm)	US$ in thousands	179,821	176,164	230,697	363,521	333,904	291,308	189,049	55,189	-14,310	-24,154	-21,417	-45,271	18,334	174	-16,239	-36,545	-40,471	-35,292	-39,886	-67,726
Revenue (ttm)	US$ in thousands	556,624	517,747	477,532	465,226	461,117	461,259	468,205	469,505	454,793	424,207	393,245	356,972	328,304	298,436	274,069	250,927	246,322	246,144	248,416	244,996
Net profit margin		32.31%	34.03%	48.31%	78.14%	72.41%	63.15%	40.38%	11.75%	-3.15%	-5.69%	-5.45%	-12.68%	5.58%	0.06%	-5.93%	-14.56%	-16.43%	-14.34%	-16.06%	-27.64%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $179,821K ÷ $556,624K
= 32.31%

Net profit margin is a key profitability metric that indicates the percentage of each dollar of revenue that translates into profit after all expenses have been deducted. Looking at the historical net profit margin data provided for Rambus Inc, we observe a fluctuating trend over the quarters.

From March 31, 2020, to December 31, 2021, the company experienced negative net profit margins, indicating that expenses exceeded revenues during this period. However, starting from March 31, 2022, there was a notable improvement in the net profit margin, although it remained negative initially before turning positive in the subsequent quarters.

The most recent data for December 31, 2024, shows a net profit margin of 32.31%, indicating that the company has significantly improved its profitability compared to the negative margins reported earlier. This positive trend in net profit margin suggests that Rambus Inc has been able to effectively manage its expenses and increase revenues, leading to a higher level of profitability.

Overall, the increasing trend in net profit margin from negative values to positive percentages reflects a positive financial performance for Rambus Inc in recent quarters, highlighting improved efficiency and effectiveness in managing its costs and generating profits.