PDF Solutions Inc (PDFS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	165,835	149,379	111,060	88,046	85,585
Property, plant and equipment	US$ in thousands	37,338	40,174	35,295	39,242	40,798
Fixed asset turnover		4.44	3.72	3.15	2.24	2.10

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $165,835K ÷ $37,338K
= 4.44

PDF Solutions Inc. has shown a consistent improvement in its fixed asset turnover ratio over the past five years, indicating the company's ability to generate revenue efficiently from its investment in fixed assets. The trend demonstrates a positive correlation between the company's sales and its fixed asset base, implying effective utilization of fixed assets to drive sales growth. The significant increase in the fixed asset turnover ratio from 2.10 in 2019 to 4.44 in 2023 reflects a substantial improvement in the company's operational efficiency and management of fixed assets. This upward trajectory suggests that PDF Solutions Inc. has become more adept at maximizing the productivity of its fixed assets, which is a positive signal for investors and stakeholders regarding the company's operational performance and potential for future growth.