Rambus Inc (RMBS)
Debt-to-capital ratio
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 |
Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.16 | 0.15 | 0.15 | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | 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 decreasing trend over the past eight quarters, starting at 0.09 in Q1 2022 and dropping to 0.00 in Q4 2023. This downward trend indicates that the company has reduced its reliance on debt financing in relation to its total capital structure.
The significant decrease from 0.09 in Q1 2022 to 0.00 in Q4 2023 suggests that Rambus Inc. has made a conscious effort to pay down debt or increase its capital base during this period. A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it signifies a lower financial risk and potentially better financial health for the company.
The company's ability to lower its debt-to-capital ratio could be attributed to various factors such as improved profitability, efficient working capital management, debt repayments, or successful equity fundraising. However, it's important to note that having a debt-to-capital ratio of 0.00 does not necessarily mean the company has no debt, but rather that its debt is negligible in comparison to its total capital.
Overall, the consistent decline in Rambus Inc.'s debt-to-capital ratio indicates a positive trend towards a stronger financial position and reduced leverage, which could enhance the company's long-term sustainability and attractiveness to investors.
Peer comparison
Dec 31, 2023