Rambus Inc (RMBS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	333,904	-14,310	18,334	-40,471	-85,964
Total assets	US$ in thousands	1,258,230	1,012,590	1,232,650	1,251,410	1,338,990
ROA		26.54%	-1.41%	1.49%	-3.23%	-6.42%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $333,904K ÷ $1,258,230K
= 26.54%

Rambus Inc.'s Return on Assets (ROA) has displayed significant fluctuations over the past five years. In 2023, the company's ROA stood at a robust 26.54%, showcasing a substantial improvement compared to the negative figures reported in the preceding years. This positive trend indicates that the company efficiently generates earnings from its assets, resulting in a healthier financial performance in 2023.

However, it is worth noting that Rambus Inc. experienced challenges in 2022, as reflected by a negative ROA of -1.41%. The company managed to rebound from the previous year, 2021, when the ROA was 1.49%, but the negative figure in 2022 suggests a period of operational difficulty or underperformance.

Looking further back, Rambus Inc. struggled with negative ROA figures in both 2020 (-3.23%) and 2019 (-6.75%), indicating persistent challenges in asset utilization and profitability during those years.

In conclusion, while Rambus Inc. demonstrated a significant improvement in ROA in 2023, the company experienced instability and underperformance in previous years. Management should continue to focus on optimizing asset utilization and operational efficiency to sustain positive ROA figures in the future.