PDF Solutions Inc (PDFS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	165,835	165,233	162,743	155,810	148,549	137,912	127,607	120,358	111,055	103,536	97,093	91,083	88,046	88,241	87,043	86,202	85,585	82,748	81,047	81,598
Property, plant and equipment	US$ in thousands	37,338	37,833	42,990	41,723	40,174	38,740	38,390	36,844	35,295	37,821	37,977	38,147	39,242	39,487	40,412	41,009	40,798	38,969	35,846	35,936
Fixed asset turnover		4.44	4.37	3.79	3.73	3.70	3.56	3.32	3.27	3.15	2.74	2.56	2.39	2.24	2.23	2.15	2.10	2.10	2.12	2.26	2.27

December 31, 2023 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investments in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.

In the case of PDF Solutions Inc., the fixed asset turnover ratio has shown a generally increasing trend over the past eight quarters. From Q1 2022 to Q4 2023, the ratio has improved from 3.27 to 4.44, reflecting the company's ability to generate more revenue from its investments in fixed assets.

The average fixed asset turnover ratio for the latest four quarters (Q1 2023-Q4 2023) is 4.08, which indicates that PDF Solutions Inc. generated $4.08 in revenue for every $1 invested in fixed assets during this period.

Overall, the increasing trend in the fixed asset turnover ratio suggests that PDF Solutions Inc. has become more efficient in utilizing its fixed assets to drive revenue growth. Investors and stakeholders may view this positively as it reflects improved asset utilization and operational efficiency within the company.