Rambus Inc (RMBS)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	179,821	333,904	-14,310	18,334	-40,471
Total assets	US$ in thousands	1,343,140	1,258,230	1,012,590	1,232,650	1,251,410
ROA		13.39%	26.54%	-1.41%	1.49%	-3.23%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $179,821K ÷ $1,343,140K
= 13.39%

Based on the provided data, Rambus Inc's return on assets (ROA) has fluctuated significantly over the years.

- In December 31, 2020, the ROA was at a negative 3.23%, indicating that the company's assets were not generating a positive return during that period. This could be a concerning sign for investors and stakeholders.

- However, by December 31, 2021, the ROA improved to 1.49%, suggesting that the company's assets were more effectively utilized to generate a positive return. This could be a positive development for the company's financial performance.

- In December 31, 2022, the ROA fell back to a negative 1.41%, indicating a decline in the company's ability to generate returns from its assets. This may raise questions about the company's operational efficiency.

- The ROA saw a substantial increase by December 31, 2023, reaching 26.54%. This significant jump suggests a strong performance in utilizing assets to generate profits, potentially indicating successful strategic initiatives or operational improvements.

- In December 31, 2024, the ROA decreased to 13.39%, although it remained at a relatively high level compared to the previous years. This indicates that the company continues to generate positive returns from its assets, but at a slightly lower rate than in the previous year.

Overall, Rambus Inc's ROA shows varying performance levels over the years, with significant fluctuations in asset utilization efficiency. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and operational effectiveness.