PDF Solutions Inc (PDFS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	197,848	193,408	188,507	193,380	147,576
Total current liabilities	US$ in thousands	50,843	58,200	43,826	42,205	27,996
Current ratio		3.89	3.32	4.30	4.58	5.27

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $197,848K ÷ $50,843K
= 3.89

The current ratio of PDF Solutions Inc. has shown a fluctuating trend over the past five years. The company's current ratio was 3.89 as of December 31, 2023, which indicates that the company had $3.89 in current assets available to cover every $1 in current liabilities. This shows an improvement from the previous year's ratio of 3.32, suggesting a stronger liquidity position.

Looking further back, the current ratio was 4.30 in 2021, 4.58 in 2020, and 5.27 in 2019. The declining trend from 2019 to 2023 indicates a potential decrease in the company's ability to meet its short-term obligations with its current assets over the years.

Overall, while the current ratio of PDF Solutions Inc. has improved in 2023 compared to the previous year, it is essential to monitor this trend closely to ensure the company maintains a healthy liquidity position and can meet its short-term financial obligations effectively.