Rambus Inc (RMBS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.00	0.00	0.00	0.15	0.13

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,038,100K)
= 0.00

The debt-to-capital ratio of Rambus Inc. has shown a consistent downward trend over the past five years, reflecting a decrease in the proportion of debt relative to total capital employed by the company. In 2020 and 2019, the company had debt-to-capital ratios of 0.15 and 0.13, respectively, which increased slightly to 0.16 in 2021. However, a significant improvement was observed in 2022 and 2023, with the company effectively reducing its reliance on debt financing to the point where the ratio reached 0.01 and eventually 0.00, indicating a negligible level of debt relative to its total capital.

This trend suggests that Rambus Inc. has been gradually strengthening its financial position by reducing debt levels and potentially improving its liquidity and solvency. Lower debt-to-capital ratios generally indicate lower financial risk and greater financial stability for the company, as it relies more on equity financing rather than external sources of debt. This can be seen as a positive sign for investors and creditors, as it may enhance the company's ability to weather economic downturns and take advantage of growth opportunities in the future.