Rambus Inc (RMBS)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.14 | 0.13 | 0.12 | 0.12 | 0.12 | 0.11 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.16 | 0.15 | 0.15 | 0.14 | 0.14 | 0.13 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.19 | 0.19 | 0.17 | 0.17 | 0.16 | 0.16 | 0.15 |
| Financial leverage ratio | 1.20 | 1.20 | 1.22 | 1.22 | 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 |
The solvency ratios of Rambus Inc, as indicated by the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, show a consistent trend of decreasing leverage and increasing financial stability over the years. The Debt-to-assets ratio, which measures the proportion of assets financed by debt, has declined steadily from 0.11 in March 2020 to 0.00 in December 2021 and has remained at 0.00 since then.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have followed a similar pattern, decreasing from 0.15 and 0.13 in March 2020, respectively, to 0.00 by December 2021. This suggests that Rambus Inc has significantly reduced its reliance on debt as a source of funding and has strengthened its financial position.
The Financial leverage ratio, which indicates the company's level of debt in relation to its equity, has also displayed a declining trend over the years, reflecting reduced financial risk and enhanced solvency. The ratio decreased from 1.36 in March 2020 to 1.20 by December 2024, indicating a gradual improvement in the company's financial structure and stability.
Overall, the solvency ratios of Rambus Inc demonstrate a positive trajectory towards healthier financial standing, with a reduction in debt levels and a strengthening of its balance sheet over the years. This indicates that the company has managed its debt obligations effectively and is likely better positioned to weather economic uncertainties and sustain long-term growth.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 132.52 | 133.97 | 167.29 | 148.83 | 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 |
The interest coverage ratio of Rambus Inc has shown a significant improvement over the analyzed period. From negative values in the range of -5.28 to -2.20 in the first three quarters of 2020, the company's ability to cover interest expenses improved as the ratio moved towards positive territory in subsequent quarters.
By the end of December 2021, the interest coverage ratio reached 3.18, indicating that the company was generating enough operating income to cover its interest obligations more than three times over. This positive trend continued into 2022, albeit with a slight dip in the first quarter.
However, the real turning point came in the first quarter of 2023, as the interest coverage ratio surged to 38.19, signifying a substantial increase in the company's ability to cover interest payments. This positive momentum was sustained throughout the rest of 2023 and into 2024, with the ratio peaking at 167.29 by the middle of that year, before stabilizing around 130 in the following quarters.
Overall, the data suggests that Rambus Inc has made significant improvements in its financial health by consistently enhancing its ability to cover interest expenses, reflecting a more robust financial position and reduced risk of financial distress due to debt obligations.