PDF Solutions Inc (PDFS)

Quick ratio

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 US$ in thousands 90,594 96,428 91,987 85,256 98,978 111,620 100,360 114,382 119,624 93,728 81,343 35,799 27,684 71,238 87,201 74,287 30,315 118,386 103,441 100,385
Short-term investments US$ in thousands 24,291 23,724 25,888 37,628 36,544 23,744 23,678 19,146 19,557 22,357 35,907 98,443 112,542 69,992 51,993 57,999 114,981 49,983 — —
Receivables US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 60,542 57,730 55,464 51,796 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
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($90,594K + $24,291K + $—K) ÷ $60,542K
= 1.90

The quick ratio, also known as the acid-test ratio, is a financial metric that provides insight into a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company can cover its short-term liabilities with its current liquid assets.

Based on the data provided for PDF Solutions Inc, the quick ratio has been fluctuating over the years. The quick ratio increased from 3.71 as of March 31, 2020, to a peak of 5.12 as of September 30, 2020, indicating a strong ability to meet short-term obligations with liquid assets.

However, there was a decline in the quick ratio to 2.22 as of September 30, 2022, indicating a potential decrease in the company's ability to cover its short-term liabilities with its current assets. The quick ratio showed some fluctuations in subsequent periods, generally hovering between 2 and 3, suggesting a moderate ability to meet short-term obligations.

Overall, the downward trend in the quick ratio from the peak in September 2020 to the end of the data period in December 31, 2024, may signal a decreased liquidity position for PDF Solutions Inc. It would be important to further investigate the reasons behind these fluctuations to assess the company's financial health and liquidity management.