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 | ||
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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.
Peer comparison
Dec 31, 2023