PDF Solutions Inc (PDFS)

The payables turnover ratio for PDF Solutions Inc. has exhibited fluctuations over the past five years. In 2023, the payables turnover improved significantly to 20.21, reflecting that the company was able to pay off its trade payables approximately 20.21 times during the year. This substantial increase from the previous year's ratio of 7.50 indicates a more efficient management of accounts payables in 2023.

Comparing the latest ratio to historical data, the 2023 payables turnover of 20.21 stands out as the highest among the years presented, suggesting a notable enhancement in the company's ability to settle its obligations to suppliers promptly. The significant improvement in payables turnover could indicate better liquidity management, stronger supplier relationships, or potentially more favorable payment terms negotiated with vendors in 2023.

On the other hand, the ratios for 2020 and 2021 were relatively stable at 8.36 and 7.96, respectively, before experiencing a notable increase to 20.21 in 2023. This indicates that the efficiency of PDF Solutions Inc. in managing its trade payables has been on an upward trend over the last couple of years.

Moreover, in 2019, the payables turnover ratio was the lowest at 4.38, suggesting that the company took longer to settle its payables compared to subsequent years. The consistent improvement in the payables turnover ratio from 2019 to 2023 reflects positively on PDF Solutions Inc.'s ability to manage its accounts payable effectively and potentially optimize its working capital.

In conclusion, PDF Solutions Inc.'s payables turnover has shown a positive trend over the years, particularly with a sharp increase to 20.21 in 2023, indicating an enhanced ability to manage its payables efficiently. This improved ratio may signify improved cash flow management, better supplier relations, and overall more effective working capital utilization by the company in the most recent year.

Peer comparison

Dec 31, 2023