Rambus Inc (RMBS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 188,650 | -5,951 | 33,992 | -26,199 | -72,696 |
| Long-term debt | US$ in thousands | — | — | — | 156,031 | 148,788 |
| Total stockholders’ equity | US$ in thousands | 1,038,100 | 779,297 | 862,396 | 912,706 | 975,373 |
| Return on total capital | 18.17% | -0.76% | 3.94% | -2.45% | -6.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $188,650K ÷ ($—K + $1,038,100K)
= 18.17%
The return on total capital for Rambus Inc. has shown varying trends over the past five years. In 2023, the return on total capital was 8.81%, reflecting a decrease from the previous year's level of 10.14%. Despite the decrease, the return remains positive, indicating that the company is generating a return on the total capital employed in its operations.
Comparing the latest data with that of 2020 and 2019, it is evident that Rambus Inc. has significantly improved its return on total capital from negative figures to positive figures. This suggests that the company has been able to better utilize its capital in generating returns for shareholders. However, the return on total capital in 2023 is still below the levels seen in 2020 and 2019, indicating some room for improvement in capital efficiency.
Overall, Rambus Inc. has shown a positive trend in its return on total capital over the past few years, with fluctuations in performance. Further analysis of the company's operations and capital deployment strategies may provide insights into how it can sustain and potentially improve its return on total capital in the future.
Peer comparison
Dec 31, 2023