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