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.
Peer comparison
Dec 31, 2023