Rambus Inc (RMBS)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 156,031 |
| Total stockholders’ equity | US$ in thousands | 1,120,690 | 1,038,100 | 779,297 | 862,396 | 912,706 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.17 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,120,690K
= 0.00
The debt-to-equity ratio is a key financial metric used to evaluate a company's financial leverage and risk management. In the case of Rambus Inc, the trend of the debt-to-equity ratio over the past five years indicates a consistently low level of leverage relative to equity.
As of December 31, 2020, Rambus had a debt-to-equity ratio of 0.17, indicating that the company had a relatively low level of debt compared to equity. However, in the subsequent years (December 31, 2021, 2022, 2023, and 2024), the debt-to-equity ratio decreased to 0.00, suggesting that Rambus either significantly reduced its debt levels or increased its equity.
A debt-to-equity ratio of 0.00 signifies that the company has no debt or that its debt is negligible compared to its equity, potentially reflecting a conservative financial strategy and a strong financial position. This low level of debt also implies that Rambus may have lower financial risk and improved ability to weather economic downturns.
Overall, the decreasing trend of Rambus Inc's debt-to-equity ratio over the years indicates a strong financial position with minimal debt obligations in relation to equity, which could be viewed positively by investors and creditors alike.
Peer comparison
Dec 31, 2024