PDF Solutions Inc (PDFS)

Working capital 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
Total current assets	US$ in thousands	197,848	194,324	204,353	193,141	193,408	180,529	163,775	180,852	188,507	185,209	182,037	178,446	193,380	218,067	140,734	149,376	147,576	142,841	148,041	153,488
Total current liabilities	US$ in thousands	50,843	49,918	52,077	54,262	58,200	52,402	41,794	42,569	43,826	41,139	40,170	35,101	42,205	32,876	21,880	27,064	27,996	20,625	21,364	22,242
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

December 31, 2023 calculation

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

PDF Solutions Inc.'s working capital turnover has shown some fluctuations over the past year. The metric ranged from a low of 0.87 in Q1 2022 to a high of 1.14 in Q3 2023. The average working capital turnover for the period was approximately 1.08, indicating that the company is able to efficiently generate sales revenue relative to its level of working capital.

A working capital turnover ratio of 1.08 means that, on average, PDF Solutions Inc. generates $1.08 in revenues for every $1 of working capital invested. This suggests that the company is effectively utilizing its working capital to generate sales, which is a positive sign of operational efficiency.

The fluctuations in the working capital turnover ratio may be influenced by various factors such as changes in sales volume, inventory management, accounts receivable and accounts payable practices. It would be advisable for stakeholders to monitor these trends over time to assess the company's ability to efficiently utilize its working capital resources.