Rambus Inc (RMBS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	179,821	176,164	230,697	363,521	333,904	291,308	189,049	55,189	-14,310	-24,154	-21,417	-45,271	18,334	174	-16,239	-36,545	-40,471	-35,292	-39,886	-67,726
Total stockholders’ equity	US$ in thousands	1,120,690	1,038,980	1,028,890	991,592	1,038,100	955,566	945,558	761,729	779,297	749,884	838,158	793,126	862,396	847,843	830,588	909,406	912,706	965,828	972,730	971,597
ROE		16.05%	16.96%	22.42%	36.66%	32.16%	30.49%	19.99%	7.25%	-1.84%	-3.22%	-2.56%	-5.71%	2.13%	0.02%	-1.96%	-4.02%	-4.43%	-3.65%	-4.10%	-6.97%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $179,821K ÷ $1,120,690K
= 16.05%

The return on equity (ROE) of Rambus Inc has shown a fluctuating trend over the past few years. Starting from negative figures in March 2020 (-6.97%) to June 2021 (-1.96%), the company struggled to generate profits relative to its shareholder equity.

However, there was a turnaround in ROE from March 2023 onwards, with a notable increase to 36.66% by March 2024. This period indicates a significant improvement in the company's ability to generate profits from its equity base.

The positive trend in ROE from March 2023 to December 2024 suggests that Rambus Inc is utilizing its shareholders' equity more efficiently to generate returns. This improvement in ROE indicates a positive outlook for the company's financial performance and may attract investors looking for companies with strong profitability ratios. It will be important to continue monitoring ROE to ensure sustained financial health and performance.