PDF Solutions Inc (PDFS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.79% | 67.93% | 60.21% | 58.24% | 60.89% |
| Operating profit margin | -2.23% | -2.33% | -18.69% | -26.41% | -53.22% |
| Pretax margin | 2.94% | 0.31% | -16.49% | -20.51% | -8.60% |
| Net profit margin | 1.87% | -2.30% | -19.35% | -45.84% | -6.33% |
PDF Solutions Inc.'s profitability ratios have shown some variability in recent years. The gross profit margin has been relatively stable, improving from 58.24% in 2020 to 68.79% in 2023, indicating the company's ability to generate profits from its core operations.
However, the operating profit margin has been inconsistent, ranging from negative figures in 2020 and 2021 to near breakeven in 2023. This suggests that the company has faced challenges in controlling its operating expenses and maintaining profitability at the operating level.
Similarly, the pretax margin and net profit margin have also exhibited fluctuations. While both ratios have shown improvement in 2023 compared to the preceding years, the company still faces challenges in generating consistent profits after accounting for taxes and other expenses.
Overall, PDF Solutions Inc.'s profitability ratios reveal a mixed performance, with improvements in gross profit margin contrasted by variability and historical losses in operating, pretax, and net profit margins. Management should focus on optimizing operational efficiency and cost controls to enhance overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.28% | -1.25% | -7.58% | -8.08% | -19.01% |
| Return on assets (ROA) | 1.07% | -1.23% | -7.85% | -14.04% | -2.26% |
| Return on total capital | -1.62% | -1.66% | -9.46% | -9.91% | -23.22% |
| Return on equity (ROE) | 1.36% | -1.63% | -9.79% | -17.21% | -2.76% |
PDF Solutions Inc.'s profitability ratios have shown mixed results over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with the company slightly improving from negative figures in 2021 and 2022 to a slightly positive figure of -0.05% in 2023. This ratio indicates that the company's core operations are generating a small return relative to its total assets.
2. Return on assets (ROA) has shown improvement, turning positive in 2023 after several years of negative figures. This indicates that the company is starting to generate a net profit relative to its total assets, highlighting potential efficiency improvements.
3. Return on total capital has also exhibited variability, with the company transitioning from negative figures to -0.07% in 2023. This ratio reflects the company's ability to generate returns for both equity and debt holders in relation to the total capital invested.
4. Return on equity (ROE) has shown inconsistency, with positive returns in 2023 but negative figures in other years. Despite the improvement in 2023, the company's ROE remains relatively low, reflecting its ability to generate profits for its shareholders relative to their equity investments.
Overall, PDF Solutions Inc.'s profitability ratios suggest a mixed performance in recent years, with signs of improvement in certain areas such as ROA and ROE, albeit from a low base. Continued focus on operational efficiency and effective capital utilization will be important for the company to sustain and enhance its profitability in the future.