PDF Solutions Inc (PDFS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	205,979	197,848	193,408	188,507	193,380
Total current liabilities	US$ in thousands	60,542	50,843	58,200	43,826	42,205
Current ratio		3.40	3.89	3.32	4.30	4.58

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $205,979K ÷ $60,542K
= 3.40

Based on the data provided, PDF Solutions Inc's current ratio has shown a declining trend over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, decreased from 4.58 on December 31, 2020, to 3.40 on December 31, 2024.

A current ratio above 1 indicates that the company has more current assets than current liabilities, reflecting a strong liquidity position. PDF Solutions Inc has maintained a current ratio well above 1 throughout the five-year period, suggesting that the company has been able to comfortably cover its short-term obligations.

However, the gradual decline in the current ratio over the years may indicate potential challenges in managing short-term liquidity or increasing short-term liabilities relative to current assets. It is essential for the company to monitor this trend closely to ensure it can continue to meet its short-term financial obligations efficiently.

Overall, PDF Solutions Inc's current ratio, although declining, remains at a relatively healthy level, indicating a reasonable ability to cover its short-term liabilities with current assets.