PDF Solutions Inc (PDFS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	98,978	111,620	100,360	114,382	119,624	93,728	81,343	35,799	27,684	71,238	87,201	74,287	30,315	118,386	103,441	100,385	97,605	100,259	86,817	90,415
Short-term investments	US$ in thousands	36,544	23,744	23,678	19,146	19,557	22,357	35,907	98,443	112,542	69,992	51,993	57,999	114,981	49,983	—	—	0	—	—	—
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
Cash ratio		2.67	2.71	2.38	2.46	2.39	2.22	2.81	3.15	3.20	3.43	3.47	3.77	3.44	5.12	4.73	3.71	3.49	4.86	4.06	4.07

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 some fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and ability to meet short-term obligations without relying on external sources of funding.

From the data provided, we can observe that the cash ratio has ranged from a low of 2.40 in Q3 2022 to a high of 3.36 in Q1 2022. In the most recent quarter, Q4 2023, the cash ratio stood at 3.01, showing a slight decrease compared to the previous quarter.

Overall, PDF Solutions Inc. has maintained a relatively healthy cash ratio above 2.5 throughout the quarters, indicating a consistent ability to cover its short-term liabilities. However, management may want to monitor any downward trends in the cash ratio to ensure the company maintains sufficient liquidity for its operations and financial obligations.