PDF Solutions Inc (PDFS)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 4,057 3,105 -3,429 -21,488 -40,363
Revenue US$ in thousands 179,465 165,835 148,549 111,060 88,046
Net profit margin 2.26% 1.87% -2.31% -19.35% -45.84%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $4,057K ÷ $179,465K
= 2.26%

The net profit margin of PDF Solutions Inc has shown a significant improvement over the past few years based on the provided data. In December 31, 2020, the company had a negative net profit margin of -45.84%, indicating that for every dollar of revenue generated, the company incurred a loss of approximately 45.84 cents.

However, there was a notable turnaround in the company's performance in the subsequent years. By December 31, 2021, the net profit margin improved to -19.35%, reflecting a reduction in losses compared to the previous year. This positive trend continued in the following years, with the net profit margin further improving to -2.31% by December 31, 2022.

The company achieved a significant milestone by December 31, 2023, as it finally entered positive territory with a net profit margin of 1.87%. This indicates that for each dollar of revenue generated, the company retained approximately 1.87 cents as profit. The positive momentum was sustained, with the net profit margin increasing further to 2.26% by December 31, 2024, demonstrating continued profitability and efficiency in managing costs relative to revenue.