PDF Solutions Inc (PDFS)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 5,644 | 5,702 | 6,209 | 5,801 | 5,020 | 4,250 | 3,743 | 3,663 | 3,062 | 3,689 | 2,372 | 1,624 | 1,755 | 1,616 | 1,783 | 1,690 | 1,269 | 807 | 648 | 609 |
| Interest coverage | 0.06 | -0.18 | -0.67 | -0.44 | -0.03 | 0.48 | 0.99 | 0.28 | -0.58 | -2.30 | -4.75 | -9.13 | -10.55 | -11.26 | -10.88 | -10.78 | -10.83 | -12.97 | -10.41 | -6.12 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $351K ÷ $5,644K
= 0.06
The interest coverage ratio of PDF Solutions Inc shows a fluctuating trend over the given period. The company had negative interest coverage from March 2020 to March 2023, indicating that its operating income was not sufficient to cover its interest expenses during those periods. However, from March 2023 onwards, the interest coverage turned positive, indicating an improvement in the company's ability to meet its interest obligations from its operating income.
The interest coverage ratio improved steadily from March 2023 to June 2023, reflecting the company's ability to cover its interest expenses by a greater margin. However, from September 2023 to December 2024, the interest coverage ratio fluctuated around the zero mark, indicating a more marginal ability to cover interest expenses compared to the earlier positive trend.
Overall, PDF Solutions Inc experienced a transition from negative to positive interest coverage, but the fluctuations in the later periods suggest that continuous monitoring and management of the company's operating income and interest expenses are necessary to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2024