Rambus Inc (RMBS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.12 | 0.11 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.15 | 0.13 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.17 | 0.15 |
| Financial leverage ratio | 1.21 | 1.30 | 1.43 | 1.37 | 1.37 |
Rambus Inc.'s solvency ratios indicate its ability to meet its financial obligations and maintain a healthy level of leverage.
The debt-to-assets ratio has been consistently low over the past five years, indicating that the company has minimal debt relative to its total assets. This suggests that Rambus relies more on equity financing compared to debt financing to support its operations.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been relatively low, indicating that the company has a conservative capital structure with a low level of debt compared to its total capital and equity. This implies a lower financial risk for the company as it has a smaller portion of debt in its capital mix.
On the other hand, the financial leverage ratio has shown some fluctuation but overall has remained at a reasonable level. The decreasing trend in recent years indicates that the company is reducing its reliance on debt financing in favor of equity financing.
Overall, the solvency ratios of Rambus Inc. suggest that the company has maintained a strong financial position with a prudent approach to managing its debt levels and capital structure. This should provide stability and financial flexibility to the company in meeting its obligations and pursuing future growth opportunities.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 126.61 | -3.18 | 3.18 | -2.53 | -7.38 |
Rambus Inc.'s interest coverage ratio has shown a significant improvement over the years, indicating the company's ability to meet its interest obligations. The interest coverage ratio has been increasing steadily since 2019, reaching 61.41 in 2023, reflecting a strong ability to cover interest payments from its operating income. This trend suggests a positive sign of financial health, as higher interest coverage ratios indicate a lower risk of default on debt obligations. The notable improvement in the company's interest coverage ratio from negative figures in 2020 and 2019 to positive levels in subsequent years signals enhanced financial stability and may indicate better overall financial management and operational efficiency within the company.