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.