Rambus Inc (RMBS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,120,690 | 1,038,100 | 779,297 | 862,396 | 912,706 |
| ROE | 16.05% | 32.16% | -1.84% | 2.13% | -4.43% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $179,821K ÷ $1,120,690K
= 16.05%
The return on equity (ROE) of Rambus Inc has displayed varying trends over the past five years.
As of December 31, 2020, the ROE was negative at -4.43%, indicating that the company was not generating sufficient profits from shareholders' equity.
By December 31, 2021, Rambus Inc managed to improve its ROE to 2.13%, showcasing a slight recovery in profitability relative to shareholders' investments.
However, by the end of December 31, 2022, the ROE decreased to -1.84%, reflecting a decline in the company's ability to generate profit from shareholder equity.
A notable turnaround occurred in the subsequent year, with the ROE significantly increasing to 32.16% as of December 31, 2023. This sharp rise indicates a substantial improvement in profitability and efficiency in utilizing shareholders' equity.
By December 31, 2024, the ROE of Rambus Inc stood at 16.05%, suggesting a sustained positive performance in generating returns for shareholders.
In conclusion, although Rambus Inc experienced fluctuations in ROE over the last five years, there was a notable improvement in profitability in 2023 followed by a relatively strong performance in 2024. This indicates that the company has been making strides towards enhancing its profitability and utilizing shareholders' equity more efficiently.
Peer comparison
Dec 31, 2024