PDF Solutions Inc (PDFS)

Current 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
Total current assets	US$ in thousands	197,848	194,324	204,353	193,141	193,408	180,529	163,775	180,852	188,507	185,209	182,037	178,446	193,380	218,067	140,734	149,376	147,576	142,841	148,041	153,488
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
Current ratio		3.89	3.89	3.92	3.56	3.32	3.45	3.92	4.25	4.30	4.50	4.53	5.08	4.58	6.63	6.43	5.52	5.27	6.93	6.93	6.90

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 variability over the past eight quarters, ranging from a low of 3.32 in Q4 2022 to a high of 4.25 in Q1 2022. The current ratio measures the company's ability to meet its short-term obligations using its current assets, with a higher ratio indicating a stronger liquidity position.

On average, the current ratio for PDF Solutions Inc. in the last eight quarters is approximately 3.72. This suggests that, on average, the company has $3.72 in current assets for every $1 in current liabilities. The consistent current ratios above 3.0 indicate that the company has a strong ability to cover its short-term liabilities with its current assets.

However, the downward trend from Q1 2022 to Q4 2022, where the current ratio decreased from 4.25 to 3.32, may raise some concerns about the company's short-term liquidity position. It is important for investors and stakeholders to monitor this ratio over time to ensure that PDF Solutions Inc. can continue to meet its short-term obligations effectively.