PDF Solutions Inc (PDFS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,869 | 470 | -18,317 | -18,060 | -7,360 |
| Revenue | US$ in thousands | 165,835 | 149,379 | 111,060 | 88,046 | 85,585 |
| Pretax margin | 2.94% | 0.31% | -16.49% | -20.51% | -8.60% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $4,869K ÷ $165,835K
= 2.94%
The pretax margin of PDF Solutions Inc. has shown a positive trend over the past five years, improving from negative figures in 2019, 2020, and 2021 to positive values in 2022 and 2023. The company's pretax margin was -8.6% in 2019, which improved to -20.51% in 2020, and further climbed to -16.49% in 2021. However, there was a significant turnaround in 2022 as the pretax margin increased to 0.32%, and notably improved to 2.94% in 2023.
This upward trend in pretax margin indicates that PDF Solutions Inc. has been able to enhance its operating efficiency and control expenses relative to its revenue generation. The positive pretax margin in the most recent two years reflects a stronger financial performance and may suggest better profitability and operational management within the company. It is essential for PDF Solutions Inc. to sustain and potentially further improve its pretax margin in the future to ensure continued financial health and sustainable growth.
Peer comparison
Dec 31, 2023