PDF Solutions Inc (PDFS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 935 | -151 | -2,092 | -15,817 | -18,060 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 246,037 | 228,946 | 210,012 | 219,585 | 234,506 |
| Return on total capital | 0.38% | -0.07% | -1.00% | -7.20% | -7.70% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $935K ÷ ($—K + $246,037K)
= 0.38%
PDF Solutions Inc's return on total capital has shown an improving trend over the five-year period from -7.70% as of December 31, 2020, to 0.38% as of December 31, 2024.
During the initial years, the return on total capital was negative, indicating that the company was not generating sufficient returns from its total capital employed. However, from December 31, 2022, onwards, there was a significant improvement in the return on total capital, turning positive in December 31, 2024.
The positive return on total capital as of December 31, 2024, indicates that PDF Solutions Inc is effectively utilizing its total capital to generate profits. This improvement suggests that the company may have implemented strategies to enhance operational efficiency, optimize capital allocation, or improve profitability.
Overall, the upward trend in return on total capital reflects positively on PDF Solutions Inc's financial performance and management effectiveness in utilizing its capital resources to create value for shareholders.
Peer comparison
Dec 31, 2024