PDF Solutions Inc (PDFS)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	351	-1,038	-4,141	-2,529	-151	2,050	3,723	1,015	-1,782	-8,484	-11,268	-14,832	-18,510	-18,199	-19,407	-18,213	-13,748	-10,464	-6,745	-3,728
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	246,037	240,464	232,153	225,413	228,946	221,564	224,170	213,425	210,012	203,203	197,875	213,567	219,585	223,455	223,124	225,253	234,506	264,777	197,705	198,469
Return on total capital		0.14%	-0.43%	-1.78%	-1.12%	-0.07%	0.93%	1.66%	0.48%	-0.85%	-4.18%	-5.69%	-6.94%	-8.43%	-8.14%	-8.70%	-8.09%	-5.86%	-3.95%	-3.41%	-1.88%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $351K ÷ ($—K + $246,037K)
= 0.14%

The return on total capital for PDF Solutions Inc has shown a downward trend from March 31, 2020, to June 30, 2022, ranging from -1.88% to -5.69%. This indicates that the company was not generating sufficient returns relative to the total capital employed during this period.

However, there has been a gradual improvement in the return on total capital from March 31, 2023, to December 31, 2024, with the ratio moving from -1.12% to 0.14%. This improvement suggests that PDF Solutions Inc has been able to better utilize its total capital to generate returns for its investors.

Overall, the company's return on total capital has been volatile in the past, but the recent positive trend may be indicative of improved financial management and operational efficiency. It will be important for PDF Solutions Inc to sustain and build upon this positive momentum in order to create long-term value for shareholders.