PDF Solutions Inc (PDFS)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	290,136	278,671	273,768	287,580	239,544
Total stockholders’ equity	US$ in thousands	228,946	210,012	219,585	234,506	196,157
Financial leverage ratio		1.27	1.33	1.25	1.23	1.22

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $290,136K ÷ $228,946K
= 1.27

The financial leverage ratio of PDF Solutions Inc. has shown fluctuations over the past five years. The ratio indicates the company's reliance on debt financing as a source of capital relative to equity. The trend indicates that from 2019 to 2022, the company's financial leverage ratio increased steadily, indicating a higher proportion of debt in its capital structure. However, in 2023, the ratio decreased slightly to 1.27, which may suggest a slight reduction in debt relative to equity compared to the previous year. Overall, the company has maintained a level of financial leverage between 1.22 and 1.33 over the past five years, indicating a moderate reliance on debt to finance its operations and investments.