PDF Solutions Inc (PDFS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	98,978	119,624	27,684	30,315	97,605
Short-term investments	US$ in thousands	36,544	19,557	112,542	114,981	0
Receivables	US$ in thousands	44,904	55,664	51,887	41,340	48,051
Total current liabilities	US$ in thousands	50,843	58,200	43,826	42,205	27,996
Quick ratio		3.55	3.35	4.38	4.42	5.20

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($98,978K + $36,544K + $44,904K) ÷ $50,843K
= 3.55

The quick ratio of PDF Solutions Inc. has shown a declining trend over the past five years, from 5.27 in 2019 to 3.89 in 2023. This ratio measures the company's ability to cover its short-term obligations with its most liquid assets.

A higher quick ratio indicates a stronger ability to meet short-term liabilities, as more liquid assets are available to cover immediate obligations. The quick ratio of PDF Solutions has generally remained above 1.0 over the years, indicating that the company has been able to meet its short-term obligations using its quick assets.

Although there has been a decrease in the quick ratio over the years, with the ratio dropping below 4.0 since 2021, it is still above 1.0, which is a key threshold for financial health. This suggests that PDF Solutions Inc. continues to maintain a relatively strong liquidity position to cover its short-term liabilities despite the decreasing trend in the quick ratio.

Further analysis and comparison with industry benchmarks or peers' ratios would provide additional insights into PDF Solutions' liquidity position and its ability to manage short-term financial obligations effectively.