PDF Solutions Inc (PDFS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 315,289 | 307,351 | 297,999 | 286,823 | 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 |
| 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 |
| Financial leverage ratio | 1.28 | 1.28 | 1.28 | 1.27 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $315,289K ÷ $246,037K
= 1.28
The financial leverage ratio for PDF Solutions Inc has been relatively stable over the past few years, ranging from 1.17 to 1.33. This ratio indicates the company's level of financial leverage and its ability to meet its financial obligations.
A financial leverage ratio of above 1 suggests that the company relies more on debt financing rather than equity financing to support its operations and growth. In PDF Solutions Inc's case, the ratio has been consistently above 1, indicating a moderate level of leverage.
A consistent financial leverage ratio suggests that the company's capital structure has remained relatively stable over the period analyzed. However, investors and creditors may monitor any significant deviations in this ratio to assess the company's financial health and risk profile.
It is essential for PDF Solutions Inc to maintain a balanced capital structure to ensure sustainable growth and mitigate financial risks associated with high debt levels. Monitoring the financial leverage ratio alongside other financial metrics can provide valuable insights into the company's overall financial performance and risk profile.
Peer comparison
Dec 31, 2024