CEVA Inc (CEVA)

Days of sales outstanding (DSO)

		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
Receivables turnover		3.40	3.97	4.06	3.90	4.55	4.92	4.81	5.60	4.47	4.39	4.08	4.15	3.21	3.47	5.01	3.76	3.08	2.99	3.55	3.99
DSO	days	107.25	91.88	89.92	93.68	80.30	74.18	75.92	65.15	81.65	83.07	89.43	88.04	113.60	105.25	72.93	96.99	118.55	121.97	102.80	91.40

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.40
= 107.25

Days of Sales Outstanding (DSO) is a liquidity metric that measures the average number of days it takes for a company to collect payment after making a sale. A higher DSO indicates that a company is taking longer to collect its accounts receivable, which may signal potential cash flow issues or inefficiencies in the collections process.

Based on the data provided for Ceva Inc., the trend in DSO over the past eight quarters shows an increasing pattern. In Q4 2022, the DSO was 84.71 days, and it has steadily increased to 113.55 days in Q4 2023. This suggests that Ceva Inc. is taking longer to collect payments from its customers, which could impact its cash flow and overall financial health.

It is important for Ceva Inc. to closely monitor and manage its DSO to ensure efficient cash flow management. Strategies to improve DSO could include implementing stricter credit policies, enhancing collection processes, and fostering better relationships with customers to expedite payment cycles. By addressing the underlying reasons for the increasing DSO trend, Ceva Inc. can work towards enhancing its financial performance and liquidity position.