PDF Solutions Inc (PDFS)

Working capital 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
Total current assets US$ in thousands 197,848 193,408 188,507 193,380 147,576
Total current liabilities US$ in thousands 50,843 58,200 43,826 42,205 27,996
Working capital turnover 1.13 1.10 0.77 0.58 0.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $165,835K ÷ ($197,848K – $50,843K)
= 1.13

The working capital turnover ratio for PDF Solutions Inc. has fluctuated over the past five years, indicating varying efficiency in managing its working capital to generate revenue.

In 2023, the ratio increased to 1.13, showing that the company generated $1.13 in revenue for every dollar of working capital invested. This improvement suggests an enhanced ability to effectively utilize its current assets and liabilities to drive sales.

Compared to the previous year, the ratio increased from 1.10 in 2022, indicating a positive trend in the company's working capital management efficiency. The significant rise in 2023 reflects a better turnover of working capital in generating revenue.

Furthermore, the ratio has shown a general increasing trend since 2020 when it was at its lowest at 0.58. This suggests that PDF Solutions Inc. has been progressively improving its working capital turnover efficiency over the years.

The working capital turnover ratio is a key indicator of a company's operational efficiency and ability to utilize its current assets to generate revenue. The consistent improvement in this ratio for PDF Solutions Inc. signifies positive overall performance in managing its working capital effectively.


Peer comparison

Dec 31, 2023