Rambus Inc (RMBS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,038,100	779,297	862,396	912,706	975,373
ROE		32.16%	-1.84%	2.13%	-4.43%	-8.81%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $333,904K ÷ $1,038,100K
= 32.16%

Rambus Inc.'s return on equity (ROE) has shown significant improvement over the past five years. In 2023, the ROE stands at a healthy 32.16%, indicating that the company is generating a strong return for its shareholders relative to its equity base. This marks a substantial improvement compared to the previous years, where ROE was negative in 2022 at -1.84%, and relatively low in 2021 at 2.13%.

The negative ROE figures in 2020 (-4.43%) and 2019 (-9.31%) suggest that during those years, the company's net income was insufficient to cover the shareholder's equity, which may have raised concerns about profitability and operational efficiency.

The upward trend in ROE from 2019 to 2023 reflects improved efficiency in utilizing shareholder equity to generate profits. Overall, the positive ROE in 2023 is a positive sign, indicating that Rambus Inc. is effectively utilizing its resources to create value for its shareholders and is on a path of sustainable growth.