Rambus Inc (RMBS)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	188,618	142,321	38,643	63,010	-5,952	-12,332	-8,787	-30,605	33,992	15,595	-772	-23,652	-26,134	-22,640	-29,827	-53,501	-74,522	-67,164	-62,190	-43,854
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	161,733	159,806	157,905	156,031	154,182	152,359	150,561	148,788	147,039	145,314	143,612
Total stockholders’ equity	US$ in thousands	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	975,373	961,283	973,226	999,887
Return on total capital		18.17%	14.89%	4.09%	8.27%	-0.76%	-1.64%	-1.05%	-3.86%	3.94%	1.54%	-0.08%	-2.22%	-2.45%	-2.02%	-2.65%	-4.77%	-6.63%	-6.06%	-5.56%	-3.84%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $188,618K ÷ ($—K + $1,038,100K)
= 18.17%

Rambus Inc.'s return on total capital has displayed some fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 8.81%, which was a slight improvement from the previous quarter at 7.99% in Q3 2023. Notably, the return on total capital had peaked at 10.42% in Q1 2023 before experiencing a gradual decline in the subsequent quarters.

Comparing the Q4 results to the same quarter in the previous year, there has been a slight decrease in the return on total capital from 10.14% in Q4 2022 to 8.81% in Q4 2023. However, this decline follows a similar pattern observed in the previous quarters of 2023, indicating a potential trend in the company's performance.

Overall, while Rambus Inc. has demonstrated variability in its return on total capital over the past eight quarters, the company has generally maintained a positive performance metric, with occasional fluctuations that may warrant further investigation to determine the underlying factors contributing to the changes.