PDF Solutions Inc (PDFS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — — — — — — — — — — — — —
Receivables turnover 3.69 4.03 2.65 2.47 2.67 2.13 2.83 2.48 2.14 2.45 2.71 2.01 2.13 1.88 2.32 1.84 1.78 1.85 1.23 1.12
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
Working capital turnover 1.13 1.14 1.07 1.12 1.10 1.08 1.05 0.87 0.77 0.72 0.68 0.64 0.58 0.48 0.73 0.70 0.72 0.68 0.64 0.62

Based on the activity ratios for PDF Solutions Inc. provided in the table:

1. Receivables Turnover: The receivables turnover ratio measures how efficiently the company is collecting its accounts receivable. A higher ratio indicates that the company is collecting its receivables more quickly. PDF Solutions Inc. has shown some variability in this ratio over the quarters, with values ranging from 2.51 to 4.03. Overall, the company's ability to collect its receivables has been relatively stable.

2. Payables Turnover: The payables turnover ratio reflects the speed at which the company pays its suppliers. A higher turnover ratio suggests that the company is paying its suppliers more frequently. PDF Solutions Inc. demonstrates consistency and efficiency in managing its payables, with values ranging from 7.50 to 21.33. The company appears to be effectively managing its payments to suppliers.

3. Working Capital Turnover: The working capital turnover ratio shows how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates better utilization of working capital. PDF Solutions Inc. has seen moderate fluctuations in this ratio, ranging from 0.87 to 1.14. The company's ability to generate sales from its working capital has been relatively stable over the quarters.

In general, PDF Solutions Inc. has shown adequate efficiency in managing its receivables, payables, and working capital. Monitoring these activity ratios can help assess the company's operational performance and effectiveness in managing its resources.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 98.83 90.48 137.82 147.93 136.77 171.45 128.76 147.24 170.53 149.06 134.69 181.47 171.38 194.36 157.11 198.01 204.93 197.42 296.25 324.80
Number of days of payables days 18.06 19.09 17.11 47.54 48.67 39.61 26.65 32.83 45.87 27.66 63.35 9.06 43.67 22.44 28.64 51.69 83.26 23.56 18.33 23.49

PDF Solutions Inc. has shown varying trends in its activity ratios over the quarters.

1. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is missing for all quarters, making it challenging to assess the efficiency of inventory management in terms of the number of days the company holds inventory before it is sold.

2. Days of Sales Outstanding (DSO): The DSO ratio measures how long it takes for the company to collect its accounts receivable. The trend in Q4 2023 (98.83 days) shows an improvement compared to the previous quarter (90.48 days), indicating that PDF Solutions Inc. was able to collect its receivables more quickly. However, the DSO remains high overall, with fluctuations seen in previous quarters, suggesting that the company may face challenges in efficiently collecting payments from customers.

3. Number of Days of Payables: This ratio represents how long it takes for the company to pay its suppliers. In Q4 2023, PDF Solutions Inc. reduced its payables period to 18.06 days from 19.09 days in the previous quarter, indicating that the company is paying its suppliers more promptly. However, compared to the same quarter in the previous year, the number of days of payables has decreased, highlighting a possible improved cash management strategy.

Overall, PDF Solutions Inc. should focus on optimizing its accounts receivable collection process further to reduce DSO and maintaining efficient payment practices to suppliers to ensure a balanced working capital cycle.

Long-term

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
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
Total asset turnover 0.57 0.58 0.56 0.56 0.53 0.52 0.51 0.45 0.41 0.38 0.35 0.34 0.31 0.28 0.37 0.36 0.36 0.36 0.35 0.35

PDF Solutions Inc. has shown consistent improvement in its fixed asset turnover ratio over the past eight quarters, indicating the company's ability to generate revenue efficiently using its fixed assets. The ratio has increased from 3.27 in Q1 2022 to 4.44 in Q4 2023, showing a positive trend over time.

On the other hand, the total asset turnover ratio has also exhibited a positive trend, albeit with fluctuations, ranging from 0.45 in Q1 2022 to 0.58 in Q3 2023. This ratio represents the company's efficiency in generating sales relative to its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that PDF Solutions Inc. has been effectively utilizing its assets to drive revenue growth over the observed period. The increasing trend in these ratios indicates improving operational efficiency and potentially better management of the company's asset base.