CEVA Inc (CEVA)

Total 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
Total assets	US$ in thousands	304,085	308,442	328,659	306,952	297,021
Total asset turnover		0.32	0.44	0.37	0.33	0.29

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $97,419K ÷ $304,085K
= 0.32

Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its assets. It indicates how well a company utilizes its assets to generate sales. A higher total asset turnover ratio generally signifies better efficiency in asset utilization.

Analyzing the total asset turnover of CEVA Inc over the past five years, we observe fluctuations in the ratio. In 2023, the total asset turnover was 0.32, indicating that the company generated $0.32 in sales for every dollar of assets. Compared to the previous year, there was a decrease in asset turnover, which could suggest a potential decline in efficiency in asset utilization.

In 2022, the total asset turnover was 0.44, showing an improvement from the previous year. This increase indicates that the company generated more revenue per dollar of assets, reflecting better asset utilization efficiency. However, in 2021, the ratio dropped to 0.37, suggesting a slight decline in asset turnover efficiency compared to the previous year.

Looking back to 2020 and 2019, we see total asset turnover ratios of 0.33 and 0.29, respectively. These figures indicate a relatively consistent performance in asset utilization efficiency over these years.

In conclusion, the fluctuation in CEVA Inc's total asset turnover ratio over the past five years suggests varying levels of efficiency in generating sales from its assets. It is essential for the company to closely monitor and improve asset turnover to ensure optimal utilization and enhance overall financial performance.