Rambus Inc (RMBS)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	200,089	200,677	248,840	218,044	187,128	140,724	36,965	61,360	-7,826	-16,459	-15,149	-39,302	23,286	5,007	-11,274	-34,051	-36,474	-32,911	-40,009	-63,637
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
Pretax margin		35.95%	38.76%	52.11%	46.87%	40.58%	30.51%	7.90%	13.07%	-1.72%	-3.88%	-3.85%	-11.01%	7.09%	1.68%	-4.11%	-13.57%	-14.81%	-13.37%	-16.11%	-25.97%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $200,089K ÷ $556,624K
= 35.95%

The pretax margin of Rambus Inc has shown a fluctuating trend over the analyzed period. Starting from a negative margin of around -25.97% in March 2020, the company managed to gradually improve its performance, with the pretax margin becoming less negative throughout the next quarters. By September 2021, Rambus Inc recorded a positive pretax margin of 1.68%, signaling a return to profitability.

The positive trend continued into 2022, with the pretax margin improving further to reach 13.07% by March 2023. Subsequently, the company maintained a strong performance, achieving pretax margins above 30% in the following quarters. By June 2024, Rambus Inc reached an impressive pretax margin of 52.11%, showing a significant improvement in profitability.

Overall, the pretax margin analysis reflects a remarkable turnaround in Rambus Inc's financial performance, transitioning from negative margins to consistently positive figures, demonstrating effective cost management and revenue growth strategies implemented by the company.