Rambus Inc (RMBS)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 188,618 142,321 38,643 63,010 -5,952 -12,332 -8,787 -30,605 33,992 15,595 -772 -23,652 -26,134 -22,640 -29,827 -53,501 -74,522 -67,164 -62,190 -43,854
Interest expense (ttm) US$ in thousands 1,490 1,597 1,678 1,650 1,874 4,127 6,362 8,697 10,706 10,588 10,502 10,399 10,340 10,271 10,182 10,136 9,852 10,553 12,032 14,132
Interest coverage 126.59 89.12 23.03 38.19 -3.18 -2.99 -1.38 -3.52 3.18 1.47 -0.07 -2.27 -2.53 -2.20 -2.93 -5.28 -7.56 -6.36 -5.17 -3.10

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $188,618K ÷ $1,490K
= 126.59

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments. Looking at the data for Rambus Inc., we observe a consistent improvement in interest coverage over the quarters. In Q4 2023, the interest coverage ratio stands at 61.41, showcasing a robust ability to meet interest obligations. This is a significant improvement compared to the ratios from previous quarters, indicating better financial health and efficiency in managing its interest expenses. Additionally, the upward trend in the interest coverage ratio suggests that Rambus Inc. has been effectively managing its debt and generating sufficient operating income to cover interest payments. Overall, the increasing interest coverage ratio reflects positively on the company's financial stability and ability to meet its debt obligations.


Peer comparison

Dec 31, 2023