PDF Solutions Inc (PDFS)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 179,465 170,505 166,446 166,386 165,835 165,233 162,743 155,810 148,549 137,912 127,607 120,358 111,060 103,541 97,098 91,088 88,046 88,241 87,043 86,202
Total current assets US$ in thousands 205,979 191,395 190,858 185,016 197,848 194,324 204,353 193,141 193,408 180,529 163,775 180,852 188,507 185,209 182,037 178,446 193,380 218,067 140,734 149,376
Total current liabilities US$ in thousands 60,542 57,730 55,464 51,796 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
Working capital turnover 1.23 1.28 1.23 1.25 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 fluctuating trend over the analyzed period. The ratio increased steadily from 0.70 in March 2020 to 1.25 in March 2024, indicating improvement in the company's efficiency in managing its working capital.

The ratio peaked at 1.28 in September 2024 before reverting to 1.23 in December 2024. This suggests that the company may have faced challenges in converting its working capital into revenue during the last quarter of 2024.

Overall, the increasing trend in the working capital turnover ratio indicates that PDF Solutions Inc has been effectively utilizing its working capital to generate revenue. It is essential for the company to continue monitoring and managing its working capital efficiently to sustain this positive trend in the future.