CEVA Inc (CEVA)

Short-term

Turnover ratios

Inventory turnover ratio is not provided in the table, however, we can analyze the other activity ratios for CEVA Inc.

Receivables turnover indicates how quickly the company collects outstanding receivables from customers. The trend shows an improvement from 2019 to 2022 before a slight decrease in 2023. A higher turnover ratio is generally favorable as it means the company is collecting receivables more efficiently.

Payables turnover ratio reflects how quickly the company pays its suppliers. The trend shows fluctuations, but overall there is a decreasing trend in payables turnover from 2019 to 2023. A higher turnover ratio indicates that the company is paying its suppliers more quickly, which could potentially strain cash flow.

Working capital turnover measures how efficiently the company utilizes its working capital to generate sales. The ratio has been fluctuating over the years, with a general improvement since 2019. A higher turnover ratio suggests that the company is effectively using its working capital to generate revenue.

Overall, CEVA Inc's receivables turnover has shown improvement, indicating better efficiency in collecting receivables. However, the decreasing trend in payables turnover may put pressure on cash flow management. The working capital turnover has increased over the years, reflecting an enhanced efficiency in utilizing working capital to generate sales.

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Average number of days

The activity ratios of CEVA Inc provide insight into how well the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): Unfortunately, there is missing data for the days of inventory on hand for the past five years, which limits our ability to assess how efficiently the company is managing its inventory levels. Without this information, we cannot determine the average number of days it takes for CEVA Inc to sell its inventory, which is a key indicator of inventory management efficiency.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding have shown some fluctuation over the past five years. In 2023, the DSO increased to 113.55 days from 84.71 days in 2022, indicating that it took the company longer to collect its accounts receivable. This trend is concerning as it suggests a potential slowdown in the collection of funds from customers, which could impact cash flow and liquidity.

3. Number of Days of Payables: The Number of Days of Payables has been relatively stable over the past five years, with a slight increase in 2023 to 36.16 days from 48.12 days in 2022. This metric indicates the average number of days it takes for CEVA Inc to pay its suppliers. A lower number of days reflects a more efficient use of trade credit, while a higher number may suggest a potential liquidity issue or strained vendor relationships.

In conclusion, while the Days of Inventory on Hand data is missing, the analysis of Days of Sales Outstanding and Number of Days of Payables suggests areas of concern for CEVA Inc's working capital management. Further investigation into the reasons behind the longer collection period for receivables and the impact of changes in payables on the company's financial health may be necessary.

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Long-term

The long-term activity ratios of CEVA Inc indicate the company's efficiency in managing its fixed assets and total assets to generate sales.

The fixed asset turnover ratio has been fluctuating over the past five years, with a general increasing trend. This ratio measures how well the company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficient in using its fixed assets to generate sales. CEVA Inc's fixed asset turnover ratio has increased from 11.06 in 2019 to 14.47 in 2023, which suggests an improvement in the efficiency of utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio measures the company's ability to generate sales from its total assets. A higher total asset turnover ratio indicates that the company is efficient in generating sales from all its assets. CEVA Inc's total asset turnover ratio has also shown an increasing trend over the past five years, from 0.29 in 2019 to 0.32 in 2023. This suggests that the company has become more effective in generating sales from its total assets.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that CEVA Inc has been improving its efficiency in utilizing both fixed and total assets to generate sales over the years. This improvement reflects positively on the company's operational efficiency and indicates its ability to generate revenue from its asset base.