PDF Solutions Inc (PDFS)

Receivables 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
Receivables	US$ in thousands	44,904	55,664	51,887	41,340	48,051
Receivables turnover		3.69	2.68	2.14	2.13	1.78

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $165,835K ÷ $44,904K
= 3.69

The receivables turnover ratio for PDF Solutions Inc. has shown consistent improvement over the past five years, indicating the company's ability to efficiently collect payment from customers.

For the most recent year ending December 31, 2023, the receivables turnover ratio stood at 3.69, demonstrating that PDF Solutions converted its accounts receivable into cash nearly 3.69 times during the year. This represents an increase from the previous year, suggesting that the company has become more effective in managing its receivables.

Furthermore, the trend of increasing receivables turnover ratios over the five-year period from 2019 to 2023 signifies that PDF Solutions has been enhancing its credit and collection policies, streamlining its billing processes, or improving its customer base, leading to a quicker conversion of credit sales into cash.

Overall, the upward trajectory of the receivables turnover ratio indicates that PDF Solutions Inc. has been successful in efficiently managing its accounts receivable and is likely to continue improving its cash flows from receivables in the future.