CEVA Inc (CEVA)

Working capital 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 current assets	US$ in thousands	209,371	177,625	188,980	167,559	178,552
Total current liabilities	US$ in thousands	26,887	33,278	35,440	28,180	26,378
Working capital turnover		0.53	0.93	0.80	0.72	0.57

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $97,419K ÷ ($209,371K – $26,887K)
= 0.53

CEVA Inc's working capital turnover has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio is generally preferred as it suggests that the company is efficiently utilizing its working capital to generate sales.

In 2023, the working capital turnover decreased to 0.53 from 0.93 in 2022, reflecting a decline in the efficiency of working capital utilization. This could signify that the company was less effective in generating sales relative to its working capital investment.

In 2022, the ratio was at its highest point of 0.93, indicating a significant improvement in efficiency compared to the previous years. This may suggest that in 2022, CEVA Inc was able to generate more sales for each unit of working capital invested, leading to improved operational performance.

The ratio in 2021 was 0.80, showing a slight decrease from 2022 but still indicating relatively efficient working capital utilization. In 2020 and 2019, the working capital turnover was 0.72 and 0.57 respectively, demonstrating a consistent but lower level of efficiency in working capital management compared to the more recent years.

Overall, fluctuations in the working capital turnover ratio for CEVA Inc over the past five years suggest varying degrees of efficiency in utilizing working capital to generate revenue. Further analysis of the company's financial performance and operational strategies would provide more insight into the reasons behind these fluctuations.