PDF Solutions Inc (PDFS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 98.83 | 136.01 | 170.53 | 171.38 | 204.93 |
| Number of days of payables | days | 18.06 | 48.67 | 45.87 | 43.67 | 83.26 |
| Cash conversion cycle | days | 80.77 | 87.34 | 124.66 | 127.70 | 121.66 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 98.83 – 18.06
= 80.77
The cash conversion cycle of PDF Solutions Inc. has fluctuated over the past five years, indicating varying efficiency in managing its working capital.
In 2023, the cash conversion cycle increased to 80.77 days from 54.93 days in 2022, suggesting a longer period for the company to convert its investments in inventory and receivables into cash. This indicates a potential slowdown in the company's operations or challenges in collecting receivables and managing inventory efficiently.
Comparing 2023 to 2021, there was a decrease in the cash conversion cycle from 85.87 days to 80.77 days, showing improved efficiency in working capital management. However, it is important to note that the cycle in 2023 was still higher compared to 2021, indicating that the company may have faced some challenges in converting assets into cash during this period.
Looking back further, there was a noticeable increase in the cash conversion cycle from 2020 to 2021 (97.86 days to 85.87 days), indicating potential operational challenges or issues with managing working capital during that period.
Overall, PDF Solutions Inc.'s cash conversion cycle has shown fluctuations over the years, pointing to the importance of continuous monitoring and improvement in working capital management practices for the company.
Peer comparison
Dec 31, 2023