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.