PDF Solutions Inc (PDFS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	98,978	119,624	27,684	30,315	97,605
Short-term investments	US$ in thousands	36,544	19,557	112,542	114,981	0
Total current liabilities	US$ in thousands	50,843	58,200	43,826	42,205	27,996
Cash ratio		2.67	2.39	3.20	3.44	3.49

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,978K + $36,544K) ÷ $50,843K
= 2.67

The cash ratio of PDF Solutions Inc. has shown a fluctuating trend over the past five years, ranging from 2.60 to 3.82. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

In 2023, the cash ratio decreased slightly to 3.01 from 3.39 in 2021. This could suggest a decrease in the company's short-term liquidity relative to its cash holdings. Despite the decrease, a cash ratio above 1 indicates that PDF Solutions Inc. has sufficient cash to cover its current liabilities.

It is worth noting that the slight fluctuations in the cash ratio may be attributed to changes in the company's cash position, management of working capital, or other operational factors. Investors and stakeholders may monitor PDF Solutions Inc.'s cash ratio over time to evaluate its short-term liquidity and financial health.