Rambus Inc (RMBS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 183,009 | 153,639 | 76,942 | 24,281 | -44,054 |
| Total assets | US$ in thousands | 1,343,140 | 1,258,230 | 1,012,590 | 1,232,650 | 1,251,410 |
| Operating ROA | 13.63% | 12.21% | 7.60% | 1.97% | -3.52% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $183,009K ÷ $1,343,140K
= 13.63%
The operating return on assets (operating ROA) of Rambus Inc has shown positive improvement over the years based on the provided data.
- By the end of December 31, 2020, the operating ROA was negative at -3.52%, indicating that the company was not effectively utilizing its assets to generate operating income.
- However, the operating ROA improved significantly by December 31, 2021, reaching 1.97%, indicating a turnaround in asset efficiency and profitability.
- The trend continued in the following years with a notable increase in operating ROA: 7.60% by December 31, 2022, 12.21% by December 31, 2023, and a further increase to 13.63% by December 31, 2024.
- This consistent improvement suggests that Rambus Inc has been more successful in generating operating income in relation to its assets, reflecting better operational management and efficiency.
Overall, the positive trend in operating ROA indicates that Rambus Inc has become more effective in utilizing its assets to generate operating profits, potentially enhancing shareholder value and financial performance.
Peer comparison
Dec 31, 2024