PDF Solutions Inc (PDFS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.40 | 3.32 | 3.44 | 3.57 | 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 |
| Quick 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 |
| 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 |
Based on the provided data, we can analyze the liquidity ratios of PDF Solutions Inc over the period from March 31, 2020, to December 31, 2024.
1. Current Ratio: This ratio indicates the company's ability to cover its short-term liabilities with its current assets. The current ratio for PDF Solutions Inc has shown a fluctuating trend over the period, ranging from a high of 6.63 on September 30, 2020, to a low of 3.32 on December 31, 2024. Generally, a current ratio above 1 indicates good short-term liquidity, and PDF Solutions Inc has maintained a current ratio above 1 throughout the period, suggesting a healthy liquidity position.
2. Quick Ratio: Also known as the acid-test ratio, this ratio measures the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio for PDF Solutions Inc has varied from 5.12 on September 30, 2020, to 1.90 on December 31, 2024. This ratio is generally more stringent than the current ratio as it excludes inventory from current assets. PDF Solutions Inc's quick ratio indicates a strong ability to cover its short-term liabilities with its most liquid assets.
3. Cash Ratio: This ratio focuses solely on the company's ability to cover its short-term liabilities with cash and cash equivalents. The cash ratio for PDF Solutions Inc has ranged from 5.12 on September 30, 2020, to 1.90 on December 31, 2024. A high cash ratio signifies a strong ability to meet short-term obligations with cash on hand, which is important for financial stability.
In conclusion, PDF Solutions Inc has maintained adequate liquidity levels over the period analyzed, as indicated by the current, quick, and cash ratios. However, a declining trend in these ratios towards the end of the period may warrant further monitoring to ensure the company's continued ability to meet its short-term obligations.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of PDF Solutions Inc has consistently been 0.00 days over multiple periods, including March 31, 2020, December 31, 2024. This indicates that the company is efficiently managing its working capital by swiftly converting its investments in inventory into cash by selling products and ultimately collecting cash from customers. A shorter cash conversion cycle is generally favorable as it reflects a faster turnover of cash and operations. PDF Solutions Inc's ability to maintain a 0.00-day cash conversion cycle suggests effective management of inventory, receivables, and payables to optimize cash flow and liquidity.