Rambus Inc (RMBS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,343,140 | 1,258,230 | 1,012,590 | 1,232,650 | 1,251,410 |
| Total stockholders’ equity | US$ in thousands | 1,120,690 | 1,038,100 | 779,297 | 862,396 | 912,706 |
| Financial leverage ratio | 1.20 | 1.21 | 1.30 | 1.43 | 1.37 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,343,140K ÷ $1,120,690K
= 1.20
The financial leverage ratio of Rambus Inc has shown a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 1.37 in 2020, the ratio increased to 1.43 in 2021, indicating a slight increase in the company's reliance on debt to finance its operations. However, in the following years, the ratio decreased steadily to 1.20 by the end of 2024.
The decreasing trend in the financial leverage ratio suggests that Rambus Inc has been reducing its reliance on debt over time, which could be a positive sign for the company's financial health and stability. The lower ratio indicates that the company has been using less debt compared to its equity to fund its operations and investments, potentially reducing its financial risk. Overall, the trend of decreasing financial leverage ratio implies that Rambus Inc has been managing its debt levels effectively in the recent years.
Peer comparison
Dec 31, 2024