PDF Solutions Inc (PDFS)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 6,579 4,869 470 -18,317 -18,060
Revenue US$ in thousands 179,465 165,835 148,549 111,060 88,046
Pretax margin 3.67% 2.94% 0.32% -16.49% -20.51%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $6,579K ÷ $179,465K
= 3.67%

The pretax margin of PDF Solutions Inc has shown a positive trend over the years, starting from a negative 20.51% as of December 31, 2020, improving to -16.49% by December 31, 2021. The company managed to turn the situation around in the following years, achieving a pretax margin of 0.32% as of December 31, 2022, which further increased to 2.94% by December 31, 2023, and 3.67% as of December 31, 2024. This upward trend indicates that the company has been more successful in controlling its operating expenses and generating more income before taxes, which could potentially lead to stronger profitability and financial performance in the future.