PDF Solutions Inc (PDFS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	90,594	96,428	91,987	85,256	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
Short-term investments	US$ in thousands	24,291	23,724	25,888	37,628	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	—	—
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
Cash ratio		1.90	2.08	2.13	2.37	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($90,594K + $24,291K) ÷ $60,542K
= 1.90

The cash ratio of PDF Solutions Inc has shown a downward trend from March 2020 to December 2024. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.

Initially, in March 2020, the cash ratio was 3.71, indicating that the company had $3.71 in cash and cash equivalents for every $1 of current liabilities. The ratio increased over the next few quarters, reaching a peak of 5.12 in September 2020, which was a positive sign of the company's liquidity position.

However, starting from December 2020, the cash ratio began to decline steadily, dropping to 1.90 by December 2024. This indicates a reduction in the company's ability to cover its short-term obligations with its available cash resources.

The decreasing trend in the cash ratio may raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations. It could signal that PDF Solutions Inc may need to manage its cash resources more effectively or consider alternative sources of liquidity to ensure it can meet its financial commitments in the future.