Rambus Inc (RMBS)

Financial leverage 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
Total assets	US$ in thousands	1,258,230	1,184,330	1,127,120	962,630	1,012,590	969,056	1,110,910	1,060,880	1,232,650	1,202,670	1,152,980	1,235,780	1,251,410	1,309,020	1,316,650	1,325,390	1,338,990	1,301,630	1,312,160	1,321,420
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
Financial leverage ratio		1.21	1.24	1.19	1.26	1.30	1.29	1.33	1.34	1.43	1.42	1.39	1.36	1.37	1.36	1.35	1.36	1.37	1.35	1.35	1.32

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 been fluctuating over the past eight quarters, ranging from a low of 1.19 in Q2 2023 to a high of 1.34 in Q1 2022. The trend indicates that the company's financial leverage has generally been decreasing over this period. A financial leverage ratio exceeding 1 suggests that the company relies more on debt financing rather than equity to fund its operations and investments.

The decreasing trend in the financial leverage ratio may indicate that Rambus Inc. has been reducing its reliance on debt to finance its operations, which could potentially reduce financial risk and improve the company's financial stability. However, it's important to consider the context of why the ratio is changing – whether due to increasing equity or decreasing debt levels.

Overall, monitoring the trends in Rambus Inc.'s financial leverage ratio over time can provide insights into the company's capital structure, risk profile, and financial health.