PDF Solutions Inc (PDFS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.83% | 68.79% | 67.75% | 60.21% | 58.24% |
| Operating profit margin | 0.52% | -0.68% | -1.41% | -11.38% | -19.07% |
| Pretax margin | 3.67% | 2.94% | 0.32% | -16.49% | -20.51% |
| Net profit margin | 2.26% | 1.87% | -2.31% | -19.35% | -45.84% |
PDF Solutions Inc has demonstrated an improving trend in its profitability ratios over the past five years. The gross profit margin has steadily increased from 58.24% in 2020 to 69.83% in 2024, indicating that the company has been able to effectively manage its production costs and generate higher margins on its products.
Despite starting with negative figures in 2020, both the operating profit margin and pretax margin have shown significant improvements over the years. The operating profit margin increased from -19.07% in 2020 to 0.52% in 2024, while the pretax margin climbed from -20.51% in 2020 to 3.67% in 2024. These improvements suggest that PDF Solutions Inc has been successful in controlling its operating expenses and increasing its operational efficiency.
Furthermore, the net profit margin, which was significantly negative at -45.84% in 2020, has gradually turned positive, reaching 2.26% in 2024. This positive trend in the net profit margin reflects the company's ability to generate profits after accounting for all expenses, including taxes, and indicates an overall improvement in its bottom-line profitability.
Overall, PDF Solutions Inc's profitability ratios have shown a positive trajectory, indicating improved operational efficiency and cost management strategies, leading to enhanced profitability over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.30% | -0.39% | -0.75% | -4.61% | -5.84% |
| Return on assets (ROA) | 1.29% | 1.07% | -1.23% | -7.85% | -14.04% |
| Return on total capital | 0.38% | -0.07% | -1.00% | -7.20% | -7.70% |
| Return on equity (ROE) | 1.65% | 1.36% | -1.63% | -9.79% | -17.21% |
PDF Solutions Inc's profitability ratios indicate a mixed performance over the years.
1. Operating Return on Assets (Operating ROA) has shown a gradual improvement from -5.84% in 2020 to 0.30% in 2024. This ratio measures the company's operating profit generated per dollar of assets, and the positive trend suggests improving operational efficiency.
2. Return on Assets (ROA) has also improved from -14.04% in 2020 to 1.29% in 2024. ROA indicates how efficiently the company generates profits from its assets. The positive trend reflects better asset utilization and profitability.
3. Return on Total Capital shows a similar pattern of improvement, moving from -7.70% in 2020 to 0.38% in 2024. This ratio measures the returns generated on all capital invested in the company, including debt and equity, implying a more effective capital allocation.
4. Return on Equity (ROE) has shown a significant improvement from -17.21% in 2020 to 1.65% in 2024. ROE measures the company's profitability relative to shareholders' equity, indicating increased shareholder value creation over the years.
Overall, the positive trends in these profitability ratios suggest that PDF Solutions Inc has been able to enhance its operational efficiency, asset utilization, and profitability, leading to better returns for both shareholders and investors.