CEVA Inc (CEVA)

Short-term

Turnover ratios

CEVA Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: The lack of data for inventory turnover indicates that information on how efficiently CEVA Inc manages its inventory is unavailable. It would be important to know this ratio to assess the speed at which the company sells its inventory.

2. Receivables Turnover: The absence of data for receivables turnover suggests that details on how effectively the company collects on its credit sales are not provided. A higher turnover ratio would indicate quicker collection of receivables, leading to better cash flow.

3. Payables Turnover: The lack of information on payables turnover makes it challenging to evaluate how swiftly CEVA Inc pays its suppliers. A higher turnover ratio would typically suggest the company is efficiently managing its payables.

4. Working Capital Turnover: The working capital turnover ratio has shown fluctuation over the years, from 0.72 in 2020 to 0.58 in 2024. This ratio indicates how effectively the company utilizes its working capital to generate revenue. An increasing trend in this ratio implies improving efficiency in utilizing working capital to drive sales.

In conclusion, while the data provided is limited, it is essential for CEVA Inc to monitor these activity ratios to ensure optimal management of its resources, efficient operations, and sustainable growth.

---

Average number of days

Based on the provided data for CEVA Inc, the activity ratios can't be calculated as the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables are all shown as "—" throughout the years from 2020 to 2024.

The Days of Inventory on Hand (DOH) ratio measures how many days a company takes to sell its inventory. A lower DOH value is generally preferred as it indicates efficient inventory management.

The Days of Sales Outstanding (DSO) ratio calculates how long it takes for a company to collect its accounts receivable. A lower DSO value is preferred as it signifies faster collection of receivables.

The Number of Days of Payables ratio shows how long a company takes to pay its suppliers. A higher number of days of payables may indicate better cash flow management, as the company is taking longer to pay its suppliers.

Without the specific values for these ratios over the years, it is not possible to analyze or draw any conclusions regarding CEVA Inc's inventory management, accounts receivable collection efficiency, or payment practices.

---

Long-term

CEVA Inc's fixed asset turnover ratio has shown fluctuations over the past few years. In 2020, the ratio was relatively high at 13.23, indicating that the company generated $13.23 in sales for every dollar invested in fixed assets. However, this ratio decreased to 7.87 in 2021, suggesting a decline in the efficiency of utilizing fixed assets to generate sales. The ratio then significantly increased to 18.97 in 2022, reflecting a substantial improvement in this aspect.

On the other hand, CEVA Inc's total asset turnover ratio has also varied over the same period. In 2020, the ratio was relatively low at 0.33, indicating that the company generated $0.33 in sales for every dollar invested in total assets. The ratio gradually increased to 0.44 in 2022, suggesting an improvement in the efficiency of utilizing all assets to generate sales. However, the ratio decreased to 0.32 in 2023 before slightly rebounding to 0.35 in 2024.

Overall, based on the trends in these long-term activity ratios, it is evident that CEVA Inc has experienced fluctuations in the efficiency of utilizing both fixed and total assets to generate sales. The company should continue monitoring and improving these ratios to enhance operational efficiency and profitability.