Rambus Inc (RMBS)

Debt-to-equity 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-equity ratio		0.00	0.00	0.00	0.17	0.15

December 31, 2023 calculation

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

Rambus Inc.'s debt-to-equity ratio has shown a decreasing trend over the past five years. As of December 31, 2023, the company had a debt-to-equity ratio of 0.00, indicating that the company had no debt relative to its equity. This represents a significant improvement from the previous year (0.01) and a substantial decline from the higher levels seen in 2021 (0.19), 2020 (0.17), and 2019 (0.15).

The reduction in the debt-to-equity ratio suggests that Rambus Inc. has been utilizing less debt financing and relying more on equity to fund its operations and growth. A lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and a stronger financial position for the company. This trend may indicate that Rambus Inc. has been effectively managing its capital structure and working towards a more sustainable financial strategy.