PDF Solutions Inc (PDFS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,105 | -3,429 | -21,488 | -40,363 | -5,418 |
| Total stockholders’ equity | US$ in thousands | 228,946 | 210,012 | 219,585 | 234,506 | 196,157 |
| ROE | 1.36% | -1.63% | -9.79% | -17.21% | -2.76% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,105K ÷ $228,946K
= 1.36%
The return on equity (ROE) for PDF Solutions Inc. has fluctuated over the past five years, with values ranging from -17.21% in 2020 to 1.36% in 2023.
The negative ROE values observed in 2020, 2021, and 2022 indicate that the company's net income was not sufficient to generate a positive return for the shareholders' equity during those years. This suggests potential inefficiencies in the company's operations, profitability, or capital structure during those periods.
The positive ROE of 1.36% in 2023 reflects a modest improvement compared to the previous years, indicating that PDF Solutions Inc. was able to generate a small return for its shareholders relative to the equity invested in the business.
Overall, the trend in ROE suggests that PDF Solutions Inc. has been facing challenges in profitability and efficiency in recent years, but has shown some improvement in 2023. Further analysis of the company's financial performance and operational strategies may provide insights into the factors driving the changes in ROE over time.
Peer comparison
Dec 31, 2023