CEVA Inc (CEVA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	97,419	134,648	122,706	100,326	87,152
Property, plant and equipment	US$ in thousands	6,732	6,624	6,765	7,586	7,879
Fixed asset turnover		14.47	20.33	18.14	13.23	11.06

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $97,419K ÷ $6,732K
= 14.47

Fixed asset turnover is a financial ratio that indicates how efficiently a company is utilizing its fixed assets to generate revenue. CEVA Inc's fixed asset turnover has shown an increasing trend over the past five years, reflecting an improvement in the company's ability to generate sales from its investments in fixed assets.

In 2023, the fixed asset turnover ratio was 14.47, which means that for every dollar invested in fixed assets, the company generated $14.47 in sales revenue. This represents a slight decrease from the previous year's ratio of 20.33 but is still higher than the ratios in 2021, 2020, and 2019.

The higher fixed asset turnover ratio indicates efficient utilization of fixed assets to drive revenue growth. It suggests that CEVA Inc is effectively managing and using its plant, property, and equipment to support its operations and generate sales.

Overall, the increasing trend in fixed asset turnover for CEVA Inc is a positive sign of operational efficiency and effective asset utilization over the years. It is essential for the company to maintain or improve this ratio in the future to continue maximizing the returns from its investments in fixed assets.