Rambus Inc (RMBS)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	153,639	134,646	46,698	70,563	76,942	69,774	57,546	36,085	24,281	4,307	-12,888	-38,075	-44,054	-43,651	-52,236	-78,194	-100,141	-93,740	-91,822	-74,763
Total assets	US$ in thousands	1,258,230	1,184,330	1,127,120	962,630	1,012,590	969,056	1,110,910	1,060,880	1,232,650	1,202,670	1,152,980	1,235,780	1,251,410	1,309,020	1,316,650	1,325,390	1,338,990	1,301,630	1,312,160	1,321,420
Operating ROA		12.21%	11.37%	4.14%	7.33%	7.60%	7.20%	5.18%	3.40%	1.97%	0.36%	-1.12%	-3.08%	-3.52%	-3.33%	-3.97%	-5.90%	-7.48%	-7.20%	-7.00%	-5.66%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $153,639K ÷ $1,258,230K
= 12.21%

Operating return on assets (operating ROA) is a key efficiency ratio that indicates how well a company is generating earnings from its assets used in operations. For Rambus Inc., the operating ROA has shown a fluctuating trend over the past eight quarters. In Q4 2023, the operating ROA was 7.27%, a slight increase from the previous quarter's 6.45%. This improvement suggests that the company was more efficient in generating operating earnings from its assets in the latest quarter.

Looking at the overall trend, the operating ROA has generally been on an upward trajectory since Q1 2022, when it stood at 4.01%. This positive trend indicates that Rambus Inc. has been increasingly effective in utilizing its operational assets to generate profits. The highest operating ROA during this period was in Q1 2023 at 8.25%, indicating a particularly strong performance in that quarter.

Despite some fluctuations, the general upward trend in the operating ROA of Rambus Inc. reflects improving efficiency in utilizing its operational assets to generate earnings. It is essential for the company to sustain or further enhance this trend to ensure continued profitability and operational effectiveness.