PDF Solutions Inc (PDFS)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 179,465 165,835 148,549 111,060 88,046
Total current assets US$ in thousands 205,979 197,848 193,408 188,507 193,380
Total current liabilities US$ in thousands 60,542 50,843 58,200 43,826 42,205
Working capital turnover 1.23 1.13 1.10 0.77 0.58

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $179,465K ÷ ($205,979K – $60,542K)
= 1.23

The working capital turnover of PDF Solutions Inc has shown a positive trend over the years, increasing from 0.58 in December 31, 2020, to 1.23 in December 31, 2024. This indicates that the company is able to generate more revenue relative to its working capital investment. The increasing trend suggests that the company is managing its working capital more efficiently, potentially by optimizing inventory levels, managing accounts receivable, and handling accounts payable effectively. A higher working capital turnover ratio reflects improved liquidity and operational efficiency, which can be seen as a positive indicator of the company's overall financial health and management effectiveness.