PDF Solutions Inc (PDFS)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	290,136	282,453	290,272	279,288	278,671	265,975	249,167	265,577	273,768	275,224	273,670	271,131	287,580	310,608	233,696	239,357	239,544	229,347	229,671	232,685
Total stockholders’ equity	US$ in thousands	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	196,157	194,987	194,892	197,347
Financial leverage ratio		1.27	1.27	1.29	1.31	1.33	1.31	1.26	1.24	1.25	1.23	1.23	1.20	1.23	1.17	1.18	1.21	1.22	1.18	1.18	1.18

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 been relatively stable over the past eight quarters, ranging from 1.24 to 1.33. The trend shows a slight increase in leverage from Q1 2022 to Q1 2023, with a peak at 1.33 in Q4 2022. This indicates that the company is relying more on debt to finance its operations and growth. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. It is important for investors and creditors to monitor the trend in this ratio to assess the company's risk profile and ability to meet its financial obligations.