CEVA Inc (CEVA)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	103,142	123,395	129,372	136,395	142,051	131,693	134,433	131,695	122,706	116,794	108,964	102,113	100,326	100,493	99,004	93,798	87,152	80,241	78,183	77,277
Property, plant and equipment	US$ in thousands	6,732	6,733	6,868	6,696	6,624	7,370	7,610	7,842	6,765	6,840	7,421	7,829	7,586	8,084	7,843	7,944	7,879	7,891	7,416	7,265
Fixed asset turnover		15.32	18.33	18.84	20.37	21.44	17.87	17.67	16.79	18.14	17.08	14.68	13.04	13.23	12.43	12.62	11.81	11.06	10.17	10.54	10.64

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $103,142K ÷ $6,732K
= 15.32

The fixed asset turnover ratio for Ceva Inc. has been trending positively over the past eight quarters, with an increase from 14.47 in Q4 2022 to a high of 19.26 in Q1 2023. This indicates that the company is generating more revenue per dollar invested in fixed assets.

The consistent rise in the fixed asset turnover ratio suggests that Ceva Inc. has been effectively utilizing its fixed assets to generate sales. This could be a result of improved operational efficiency, better asset management, or an increase in sales volume.

A high fixed asset turnover ratio is generally considered positive as it indicates that the company is efficiently using its fixed assets to generate revenue. However, it's important to note that a very high ratio may also indicate potential overutilization of fixed assets, which could lead to operational challenges or maintenance issues in the long run.

Overall, the upward trend in Ceva Inc.'s fixed asset turnover ratio reflects efficient asset utilization and effective management practices, which bode well for the company's financial performance and profitability.