GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Rambus Inc (NAS:RMBS) » Definitions » Cash Conversion Cycle

RMBS (Rambus) Cash Conversion Cycle : 141.37 (As of Sep. 2024)


View and export this data going back to 1997. Start your Free Trial

What is Rambus Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Rambus's Days Sales Outstanding for the three months ended in Sep. 2024 was 53.43.
Rambus's Days Inventory for the three months ended in Sep. 2024 was 164.79.
Rambus's Days Payable for the three months ended in Sep. 2024 was 76.85.
Therefore, Rambus's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 141.37.


Rambus Cash Conversion Cycle Historical Data

The historical data trend for Rambus's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Rambus Cash Conversion Cycle Chart

Rambus Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 75.80 71.36 46.94 28.51 79.73

Rambus Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 122.01 125.29 144.63 141.14 141.37

Competitive Comparison of Rambus's Cash Conversion Cycle

For the Semiconductors subindustry, Rambus's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rambus's Cash Conversion Cycle Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Rambus's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rambus's Cash Conversion Cycle falls into.



Rambus Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Rambus's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=54.73+100.68-75.68
=79.73

Rambus's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=53.43+164.79-76.85
=141.37

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Rambus  (NAS:RMBS) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Rambus Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Rambus's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Rambus Business Description

Address
4453 North First Street, Suite 100, San Jose, CA, USA, 95134
Rambus Inc is a semiconductor solutions provider offering high-speed, high-security computer chips and Silicon intellectual property. The company's key products include memory interface chips, built for high speed and efficiency; silicon IP, providing high-speed memory and chip-to-chip connection technology; and architecture licenses, which allow customers to use portions of Rambus' patented inventions for their own digital electronics. The firm receives the majority of its revenue from the United States, Taiwan, Asia, Japan, and Singapore.
Executives
Eric B Stang director
Luc Seraphin officer: Interim CEO, SVP & GM 1050 ENTERPRISE WAY, SUITE 700, 4453 N FIRST ST, STE 100, SAN JOSE CA 95134
John Shinn officer: SVP, General Counsel 4453 NORTH FIRST STREET, SUITE 100, SAN JOSE CA 95134
Desmond Lynch officer: SVP, CFO 4453 NORTH FIRST STREET, SUITE 100, SAN JOSE CA 95134
Xianzhi Sean Fan officer: COO C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
Steven Laub director 5555 NE MOORE CT., HILLSBORO OR 97124
Emiko Higashi director C/O GILO VENTURES, 175 ALMENDRAL AVENUE, ATHERTON CA 94027
Necip Sayiner director 400 W CESAR CHAVEZ, AUSTIN TX 78701
John K Allen officer: Chief Accounting Officer C/O LEADIS TECHNOLOGY, INC., 800 W. CALIFORNIA AVENUE, SUNNYVALE CA 94086
Charles Kissner director 170 ROSE ORCHARD WAY, SAN JOSE CA 95134
Karen M Rogge director APPLIED MICRO CIRCUITS CORP, 4555 GREAT AMERICA PARKWAY, SUITE 601, SANTA CLARA CA 95054
James A Mitarotonda director 888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Keith A Jones officer: Principal Accounting Officer 4453 N FIRST ST, STE 100, SAN JOSE CA 95134
Jae Kim officer: SVP, GC & HR C/O RAMBUS INC., 1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089
Gregory S Lang director C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138