PDF Solutions Inc (PDFS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.55 | 3.53 | 3.56 | 3.62 | 3.35 | 3.45 | 3.88 | 4.29 | 4.38 | 4.46 | 4.36 | 5.06 | 4.42 | 6.55 | 6.44 | 5.44 | 5.20 | 7.03 | 7.14 | 7.33 |
| Cash ratio | 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 | 3.49 | 4.86 | 4.06 | 4.07 |
Looking at the liquidity ratios of PDF Solutions Inc., we can see that the current ratio has been consistently strong over the past eight quarters, ranging from 3.32 to 3.92. This indicates that the company has more than enough current assets to cover its current liabilities, providing a comfortable buffer for its short-term obligations.
Similarly, the quick ratio, which measures the company's ability to meet its short-term liabilities using its most liquid assets, also shows a stable and healthy trend, remaining above 3.30 in all quarters. This suggests that PDF Solutions Inc. has a strong liquidity position and can easily cover its immediate financial commitments without relying on selling inventory.
The cash ratio, which focuses solely on the company's cash and cash equivalents in relation to its current liabilities, has also been robust, remaining above 2.40 in all quarters. This indicates that PDF Solutions Inc. holds enough cash to meet its short-term obligations without relying on other current assets.
Overall, based on the liquidity ratios, PDF Solutions Inc. appears to have a solid liquidity position, with ample resources to meet its short-term financial requirements and withstand any unexpected cash flow pressures.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 80.77 | 71.39 | 120.71 | 100.39 | 88.10 | 131.84 | 102.11 | 114.41 | 124.66 | 121.39 | 71.34 | 172.41 | 127.70 | 171.92 | 128.46 | 146.32 | 121.66 | 173.86 | 277.92 | 301.31 |
The cash conversion cycle of PDF Solutions Inc. fluctuated over the past eight quarters, ranging from a low of 54.93 days in Q4 2022 to a high of 120.71 days in Q2 2023. The company's cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferred as it indicates that the company is efficiently managing its working capital and quickly turning its resources into cash.
In Q4 2023, PDF Solutions Inc. had a cash conversion cycle of 80.77 days, which indicates a moderate efficiency in managing its working capital compared to the previous quarter. However, when compared to the same quarter in the previous year, there has been an improvement from 105.91 days in Q4 2022. This improvement suggests that the company may have streamlined its operations or improved its inventory management practices.
The trend of the cash conversion cycle over the past eight quarters may reflect changes in the company's business operations, sales patterns, inventory management, and payment terms with customers and suppliers. It is important for PDF Solutions Inc. to continue monitoring and managing its cash conversion cycle to ensure optimal utilization of its working capital and overall financial health.