CEVA Inc (CEVA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,648 | 15,131 | 16,827 | 10,749 | 10,106 |
| Payables | US$ in thousands | 1,154 | 1,995 | 1,464 | 894 | 701 |
| Payables turnover | 10.09 | 7.58 | 11.49 | 12.02 | 14.42 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,648K ÷ $1,154K
= 10.09
The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating how many times during a period the company pays off its suppliers. The trend of CEVA Inc's payables turnover over the last five years indicates a fluctuating pattern:
- Dec 31, 2023: Payables turnover of 10.09
- Dec 31, 2022: Payables turnover of 7.58
- Dec 31, 2021: Payables turnover of 11.49
- Dec 31, 2020: Payables turnover of 12.02
- Dec 31, 2019: Payables turnover of 14.42
The decrease in payables turnover from 2019 to 2023 suggests a lengthening in the company's payable period, indicating that CEVA Inc is taking longer to pay its suppliers. This may have various implications such as deteriorating supplier relationships or potential cash flow management issues.
However, it is essential to consider the industry norms and company-specific factors before drawing any conclusive insights from the payables turnover ratio. Further analysis and comparisons with industry peers can provide a more comprehensive understanding of CEVA Inc's payables management efficiency.
Peer comparison
Dec 31, 2023