PDF Solutions Inc (PDFS)

Receivables 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
Receivables	US$ in thousands	44,904	40,959	61,451	63,148	55,664	64,781	45,017	48,553	51,887	42,281	35,828	45,285	41,340	46,988	37,466	46,763	48,051	44,756	65,781	72,611
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

December 31, 2023 calculation

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

The receivables turnover ratio measures how efficiently a company is managing its receivables by indicating how many times during a period its accounts receivable are collected and converted into cash. PDF Solutions Inc.'s receivables turnover ratio has exhibited some fluctuations over the past eight quarters, ranging from a low of 2.51 in Q3 2022 to a high of 4.03 in Q3 2023.

The overall trend indicates variability in the company's ability to collect outstanding receivables in a timely manner. A higher receivables turnover ratio suggests that PDF Solutions is collecting its accounts receivable more quickly, which is generally a positive sign as it indicates a more efficient credit and collection process. On the other hand, a lower ratio may indicate potential issues with collections or an overly lenient credit policy.

Overall, PDF Solutions Inc. should continue to monitor its receivables turnover ratio closely to ensure efficient management of its accounts receivable and maintain healthy cash flow levels.