CEVA Inc (CEVA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 17.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Payables turnover | 13.43 | 23.31 | 28.77 | 18.14 | 17.10 | 14.42 | 10.70 | 6.56 | 11.49 | 7.52 | 5.33 | 12.69 | 12.02 | 12.86 | 8.80 | 11.71 | 14.42 | 7.03 | 15.70 | 10.67 |
| Working capital turnover | 0.57 | 0.85 | 0.87 | 0.94 | 0.98 | 0.92 | 0.95 | 0.84 | 0.80 | 0.78 | 0.83 | 0.72 | 0.72 | 0.66 | 0.63 | 0.61 | 0.57 | 0.54 | 0.49 | 0.48 |
Ceva Inc.'s activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital. The inventory turnover ratio is not provided in the table, indicating that data for this metric is unavailable.
1. Receivables Turnover:
Ceva Inc.'s receivables turnover has been on a decreasing trend from Q1 2022 to Q4 2023. The declining trend suggests that the company is taking longer to collect payments from its customers, which may impact its cash flow and liquidity position. The average collection period for receivables has lengthened over time.
2. Payables Turnover:
The payables turnover ratio has shown fluctuations throughout the periods presented, with a notable increase in Q2 2023. This indicates that Ceva Inc. is taking longer to pay its suppliers, which could have implications for supplier relationships and potential cash discounts. However, a higher payables turnover ratio can also indicate better cash flow management.
3. Working Capital Turnover:
Ceva Inc.'s working capital turnover has been fairly stable, hovering around 0.8 to 1.0 from Q1 2022 to Q4 2023. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates more effective utilization of working capital. In this case, Ceva Inc.'s working capital turnover is relatively consistent, suggesting a steady pace of revenue generation in relation to its working capital.
Overall, Ceva Inc. may need to focus on improving its receivables turnover to shorten the collection period and enhance cash inflows. Managing payables effectively to maintain a balance between early and delayed payments can also be a strategy to optimize working capital turnover and improve overall working capital efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 21.28 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (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 |
| Number of days of payables | days | 27.17 | 15.66 | 12.69 | 20.12 | 21.35 | 25.32 | 34.11 | 55.60 | 31.76 | 48.53 | 68.50 | 28.77 | 30.36 | 28.39 | 41.50 | 31.16 | 25.32 | 51.95 | 23.25 | 34.21 |
Days of Inventory on Hand (DOH) for Ceva Inc. is not provided in the data, which makes it challenging to evaluate the efficiency of inventory management. It is advisable for the company to track and disclose this metric in order to assess how quickly inventory is moving through the business.
Days of Sales Outstanding (DSO) has been fluctuating over the quarters, with an increasing trend. This indicates that Ceva Inc. is taking longer to collect payments from customers, which may lead to cash flow issues. The company should focus on improving its collection processes and credit policies to shorten DSO and enhance liquidity.
Number of Days of Payables shows variability over the quarters, with a decreasing trend in Q3 and Q4 of 2023. This suggests that the company is taking longer to pay its suppliers, which may strain supplier relationships. Ceva Inc. should balance its payables to maintain good relationships with suppliers while optimizing cash flow.
Overall, Ceva Inc. should aim to streamline its working capital management by reducing DSO and optimizing its inventory levels to enhance efficiency and financial performance. Balancing the payables cycle is also crucial to maintain healthy vendor relationships and manage cash effectively.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.34 | 0.42 | 0.43 | 0.44 | 0.46 | 0.45 | 0.42 | 0.39 | 0.37 | 0.37 | 0.35 | 0.32 | 0.33 | 0.33 | 0.33 | 0.32 | 0.29 | 0.27 | 0.27 | 0.27 |
Long-term activity ratios provide insights into how effectively a company is utilizing its assets to generate sales. In the case of Ceva Inc., we can analyze two key ratios: fixed asset turnover and total asset turnover.
1. Fixed Asset Turnover:
- Fixed asset turnover measures how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
- Over the past eight quarters, Ceva Inc.'s fixed asset turnover has been consistent, ranging from 14.47 to 19.26. This indicates that the company is effectively generating sales relative to its investment in fixed assets.
- The highest ratio was recorded in Q1 2023 at 19.26, suggesting that Ceva Inc. was able to generate significant revenue using its fixed assets during that period.
2. Total Asset Turnover:
- Total asset turnover reflects how efficiently a company is using all its assets, including both fixed and current assets, to generate sales. A higher ratio suggests more efficient asset utilization.
- Ceva Inc.'s total asset turnover has shown some fluctuations over the past quarters, ranging from 0.32 to 0.46. This indicates varying levels of efficiency in utilizing all assets to generate sales.
- The lowest total asset turnover was observed in Q4 2023 at 0.32, implying that the company generated lesser revenue relative to its total assets during that period.
Overall, while Ceva Inc. has shown relatively stable performance in terms of fixed asset turnover, there has been some variability in total asset turnover. The company should focus on improving total asset turnover to ensure optimal utilization of all its assets in generating revenue.