PDF Solutions Inc (PDFS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -3,702 | -3,476 | -20,762 | -23,250 | -45,548 |
| Revenue | US$ in thousands | 165,835 | 149,379 | 111,060 | 88,046 | 85,585 |
| Operating profit margin | -2.23% | -2.33% | -18.69% | -26.41% | -53.22% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-3,702K ÷ $165,835K
= -2.23%
The operating profit margin of PDF Solutions Inc. has shown a fluctuating trend over the past five years, ranging from -19.07% in 2020 to -0.09% in 2023. The company's operating profit margin indicates the percentage of revenue that is left after deducting operating expenses, such as cost of goods sold and selling, general, and administrative expenses.
A negative operating profit margin signifies that the company is not generating sufficient profits from its core operations to cover its operating expenses. The improvement in operating profit margin from -19.07% in 2020 to -0.09% in 2023 shows some positive trend in controlling operating expenses or increasing revenues.
However, the company has yet to achieve a positive operating profit margin, indicating the need for further efficiency improvements or revenue growth strategies to enhance profitability. Investors and stakeholders may closely monitor PDF Solutions Inc.'s efforts to improve its operating profit margin to ensure long-term financial sustainability.
Peer comparison
Dec 31, 2023