Rambus Inc (RMBS)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,258,230	1,012,590	1,232,650	1,251,410	1,338,990
Total stockholders’ equity	US$ in thousands	1,038,100	779,297	862,396	912,706	975,373
Financial leverage ratio		1.21	1.30	1.43	1.37	1.37

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,258,230K ÷ $1,038,100K
= 1.21

The financial leverage ratio of Rambus Inc. has shown a declining trend over the past five years, decreasing from 1.38 in 2019 to 1.21 in 2023. A financial leverage ratio above 1 indicates that the company has more debt in its capital structure than equity.

The decreasing trend in the financial leverage ratio suggests that Rambus Inc. has been reducing its reliance on debt financing relative to equity financing over the years. This could potentially indicate a more conservative approach to managing its capital structure and financial risk.

A lower financial leverage ratio can also imply a stronger financial position and lower financial risk for the company. It may provide Rambus Inc. with more flexibility in managing its debt obligations and navigating economic uncertainties.

Overall, the decreasing financial leverage ratio of Rambus Inc. indicates a positive trend towards a more balanced and potentially less risky capital structure.