PDF Solutions Inc (PDFS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 98.83 | 90.48 | 137.82 | 147.93 | 136.77 | 171.45 | 128.76 | 147.24 | 170.53 | 149.06 | 134.69 | 181.47 | 171.38 | 194.36 | 157.11 | 198.01 | 204.93 | 197.42 | 296.25 | 324.80 |
| Number of days of payables | days | 18.06 | 19.09 | 17.11 | 47.54 | 48.67 | 39.61 | 26.65 | 32.83 | 45.87 | 27.66 | 63.35 | 9.06 | 43.67 | 22.44 | 28.64 | 51.69 | 83.26 | 23.56 | 18.33 | 23.49 |
| Cash conversion cycle | days | 80.77 | 71.39 | 120.71 | 100.39 | 88.10 | 131.84 | 102.11 | 114.41 | 124.66 | 121.39 | 71.34 | 172.41 | 127.70 | 171.92 | 128.46 | 146.32 | 121.66 | 173.86 | 277.92 | 301.31 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 98.83 – 18.06
= 80.77
The cash conversion cycle is a key indicator of a company's efficiency in managing its working capital. It represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company is able to generate cash more quickly from its operations.
Analyzing PDF Solutions Inc.'s cash conversion cycle over the past few quarters, we can observe fluctuations in the efficiency of its working capital management. In Q4 2023, the cash conversion cycle increased to 80.77 days from 71.39 days in Q3 2023, suggesting a potential slowdown in the company's ability to convert its investments into cash.
Looking further back, the cash conversion cycle was significantly higher at 120.71 days in Q2 2023, indicating a longer period for the company to realize cash from its operations. Q1 2023 showed an improvement with a cash conversion cycle of 62.67 days, reflecting a more efficient working capital management during that period.
Comparing these results to previous quarters, we can see a general trend of variability in PDF Solutions Inc.'s cash conversion cycle. It is essential for the company to monitor and improve this metric consistently to optimize its working capital management and enhance cash flow generation efficiency.
Peer comparison
Dec 31, 2023