Rambus Inc (RMBS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.11 | 0.11 | 0.11 | 0.11 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.16 | 0.15 | 0.15 | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.19 | 0.19 | 0.17 | 0.17 | 0.16 | 0.16 | 0.15 | 0.15 | 0.15 | 0.15 | 0.14 |
| 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 |
Based on the solvency ratios of Rambus Inc. over the past eight quarters, we can observe the following trends:
1. Debt-to-assets ratio has been consistently low, indicating that the company has not relied heavily on debt to finance its assets. This suggests a strong financial position in terms of asset coverage by equity.
2. Debt-to-capital ratio and debt-to-equity ratio have also remained low and stable throughout the period, reflecting minimal reliance on debt for capital structure. This indicates a well-balanced mix of debt and equity in the company's financing decisions.
3. The financial leverage ratio has shown slight variability over the quarters but generally remained around the 1.3 mark. This implies that the company has maintained a moderate level of financial leverage, balancing the use of debt to support operations without jeopardizing solvency.
Overall, the solvency ratios of Rambus Inc. indicate a conservative and prudent approach to managing its financial obligations, with a focus on maintaining a healthy balance sheet and limiting exposure to financial risks associated with high levels of debt.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Based on the data provided for Rambus Inc., it is observed that the interest coverage ratio has been generally increasing over the quarters, indicating an improvement in the company's ability to cover its interest expenses. In Q4 2023, the interest coverage ratio was 61.41, which is significantly higher compared to Q1 2022 when it was just 4.90.
The trend of increasing interest coverage ratios bodes well for Rambus Inc. as it suggests that the company's operating income has been improving relative to its interest expenses. This trend could be a result of various factors such as increased revenues, cost control measures, or efficient operational performance.
Overall, the consistent improvement in Rambus Inc.'s interest coverage ratio indicates a positive financial trajectory for the company, demonstrating its capacity to comfortably meet its interest obligations and potentially reduce financial risk.