Rambus Inc (RMBS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	187,642	193,051	245,910	219,519	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	161,733	159,806	157,905	156,031	154,182	152,359	150,561
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
Return on total capital		16.74%	18.58%	23.90%	22.14%	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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $187,642K ÷ ($—K + $1,120,690K)
= 16.74%

The return on total capital for Rambus Inc has shown a fluctuating trend over the quarters provided. Starting from negative percentages in March 2020 (-4.77%) to December 2022 (-0.76%), the company struggled to generate returns that exceeded its total capital during this period. However, there was a notable improvement in the performance from March 2023 (8.27%) to December 2024 (16.74%), with the return on total capital consistently increasing. The peak return was recorded in June 2024 at 23.90%. This positive trend indicates that the company has been able to generate higher returns on its total capital investment, suggesting improved efficiency and profitability in its operations. Investors and stakeholders may view this upward trend positively as it signifies the company's ability to use its capital more effectively to generate returns.