PDF Solutions Inc (PDFS)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	114,086	114,887	114,134	107,528	100,642	90,121	81,291	75,299	66,862	61,179	56,313	52,142	51,281	52,256	51,836	52,109	52,112	48,613	44,944	42,410
Revenue (ttm)	US$ in thousands	165,835	165,233	162,743	155,810	148,549	137,912	127,607	120,358	111,055	103,536	97,093	91,083	88,046	88,241	87,043	86,202	85,585	82,748	81,047	81,598
Gross profit margin		68.79%	69.53%	70.13%	69.01%	67.75%	65.35%	63.70%	62.56%	60.21%	59.09%	58.00%	57.25%	58.24%	59.22%	59.55%	60.45%	60.89%	58.75%	55.45%	51.97%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $114,086K ÷ $165,835K
= 68.79%

The gross profit margin of PDF Solutions Inc. has shown a stable and generally increasing trend over the past eight quarters, indicating consistent profitability in its operations. The company's gross profit margins range from 62.56% to 70.13%, with an average of approximately 67.78%. This suggests that PDF Solutions has been effectively managing its production and operational costs to generate a strong level of gross profit relative to its revenue.

The successive quarterly increases in gross profit margin from Q1 2022 to Q3 2023 highlight the company's ability to improve efficiency in its cost of goods sold, possibly through better cost control measures, pricing strategies, or economies of scale. The latest gross profit margin of 68.79% in Q4 2023 indicates a slight decrease compared to the previous quarter but remains relatively high, reflecting PDF Solutions' continued profitability despite some fluctuations in profitability ratios.

Overall, PDF Solutions Inc.'s gross profit margin trend suggests that the company has been effectively managing its production costs and pricing strategies, which has contributed to its ability to generate strong gross profits relative to its revenues. This consistency and improvement in profitability metrics are generally positive indicators of the company's financial health and operational efficiency.