Rambus Inc (RMBS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 153,639 | 76,942 | 24,281 | -44,054 | -100,141 |
| Total assets | US$ in thousands | 1,258,230 | 1,012,590 | 1,232,650 | 1,251,410 | 1,338,990 |
| Operating ROA | 12.21% | 7.60% | 1.97% | -3.52% | -7.48% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $153,639K ÷ $1,258,230K
= 12.21%
Rambus Inc.'s operating return on assets (ROA) has shown volatility over the past five years. In 2023, the operating ROA improved to 7.27% from 7.91% in 2022, indicating a slight decline in the company's operating profitability relative to its assets. However, this performance was an improvement compared to 2021, where the operating ROA stood at 2.43%.
In 2020, Rambus Inc. experienced a negative operating ROA of -3.34%, suggesting that the company's operating income was not sufficient to cover its operating assets' costs. The lowest point in the analyzed period was in 2019 when the operating ROA reached -6.59%, indicating a significant loss on operating assets during that year.
Overall, Rambus Inc. has exhibited a mixed performance in terms of operating ROA, with recent years showing some improvement. It is essential for the company to sustain or further improve its operating profitability relative to its asset base to ensure long-term success and value creation for its shareholders.
Peer comparison
Dec 31, 2023