PDF Solutions Inc (PDFS)

Payables 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
Cost of revenue (ttm)	US$ in thousands	51,749	50,346	48,609	48,282	47,907	47,791	46,316	45,059	44,193	42,357	40,780	38,941	36,765	35,985	35,207	34,093	33,474	34,136	36,104	39,189
Payables	US$ in thousands	2,561	2,633	2,279	6,289	6,388	5,186	3,382	4,053	5,554	3,210	7,078	967	4,399	2,212	2,763	4,828	7,636	2,203	1,813	2,522
Payables turnover		20.21	19.12	21.33	7.68	7.50	9.22	13.69	11.12	7.96	13.20	5.76	40.27	8.36	16.27	12.74	7.06	4.38	15.50	19.91	15.54

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $51,749K ÷ $2,561K
= 20.21

The payables turnover ratio is a measure of how efficiently a company manages its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance.

PDF Solutions Inc.'s payables turnover ratio has been fluctuating over the past eight quarters. In Q4 2023, the payables turnover ratio reached 20.21, indicating that the company turned over its accounts payable approximately 20.21 times during that quarter. This was an improvement from the previous quarter, Q3 2023, where the ratio was 19.12.

Comparing the latest ratio to the same quarter in the previous year, Q4 2022, shows a significant improvement from 7.50 to 20.21, suggesting that PDF Solutions Inc. has been more efficient in managing its accounts payable.

Overall, the upward trend in payables turnover ratios indicates that PDF Solutions Inc. has been improving its efficiency in managing its accounts payable by paying off its obligations more quickly than in previous periods. This could be a positive sign of effective working capital management and good relationships with suppliers.