CEVA Inc (CEVA)

Receivables 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
Receivables	US$ in thousands	30,307	31,063	31,872	35,007	31,250	26,763	27,962	23,508	27,449	26,581	26,697	24,631	31,224	28,979	19,781	24,925	28,307	26,813	22,019	19,351
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $103,142K ÷ $30,307K
= 3.40

The receivables turnover ratio for Ceva Inc. demonstrates a decreasing trend over the past eight quarters. In Q4 2023, the receivables turnover was 3.21, showing a decline from the previous quarter's ratio of 3.62 and a continuation of the downward trajectory seen since Q2 2022.

This decrease may indicate that the company is taking longer to collect payments from its customers, which could pose liquidity challenges and impact cash flow. A lower receivables turnover ratio suggests inefficiencies in the company's credit policies, collection efforts, or potentially a higher proportion of overdue accounts.

It is important for Ceva Inc. to analyze the reasons behind this decreasing trend in receivables turnover and take appropriate measures to improve the efficiency of its accounts receivable management. By closely monitoring and managing its receivables turnover, the company can enhance its working capital management and strengthen its financial position.