PDF Solutions Inc (PDFS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 315,289 | 290,136 | 278,671 | 273,768 | 287,580 |
| Total stockholders’ equity | US$ in thousands | 246,037 | 228,946 | 210,012 | 219,585 | 234,506 |
| Financial leverage ratio | 1.28 | 1.27 | 1.33 | 1.25 | 1.23 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $315,289K ÷ $246,037K
= 1.28
The financial leverage ratio of PDF Solutions Inc has been relatively stable over the past five years. It increased from 1.23 in 2020 to 1.25 in 2021, indicating a slight uptick in the company's financial leverage. Subsequently, the ratio continued to rise to 1.33 in 2022, reflecting a higher level of debt utilization to finance the company's operations.
However, in the following years, there was a slight decline in the financial leverage ratio, dropping to 1.27 in 2023 and then to 1.28 in 2024. Despite the fluctuations, the company has maintained a moderate level of financial leverage, suggesting a balanced mix of debt and equity in its capital structure.
Overall, the trend in PDF Solutions Inc's financial leverage ratio indicates a cautious approach to debt management, with the company neither being overly aggressive nor excessively conservative in leveraging its operations. Investors and stakeholders may view this stable and relatively moderate financial leverage positively, as it indicates a prudent capital structure strategy.
Peer comparison
Dec 31, 2024