PDF Solutions Inc (PDFS)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 246,037 | 228,946 | 210,012 | 219,585 | 234,506 |
| ROE | 1.65% | 1.36% | -1.63% | -9.79% | -17.21% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,057K ÷ $246,037K
= 1.65%
PDF Solutions Inc's return on equity (ROE) has experienced a declining trend from -17.21% on December 31, 2020, to 1.65% on December 31, 2024. The negative ROE figures in 2020 and 2021 may indicate that the company's net income was insufficient to cover shareholders' equity during those years. However, the improvement in ROE in subsequent years suggests a positive development in generating profits relative to shareholder investments.
The gradual recovery in ROE from negative values to positive figures indicates that PDF Solutions Inc has been enhancing its profitability and efficiency in utilizing shareholders' equity. The positive ROE values in 2023 and 2024 demonstrate that the company is generating higher profits relative to its equity base, which may be favorable for shareholders.
Overall, PDF Solutions Inc's ROE has shown an improvement over the years, signaling that the company is gradually becoming more profitable and effective in generating returns for its shareholders. However, it is important to continue monitoring this ratio to ensure sustained growth and profitability in the future.
Peer comparison
Dec 31, 2024