CEVA Inc (CEVA)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	106,939	97,419	134,648	122,706	100,326
Total current assets	US$ in thousands	216,341	209,371	177,648	188,980	167,559
Total current liabilities	US$ in thousands	30,529	26,887	33,278	35,440	28,180
Working capital turnover		0.58	0.53	0.93	0.80	0.72

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $106,939K ÷ ($216,341K – $30,529K)
= 0.58

To analyze the working capital turnover of CEVA Inc based on the provided data, we can observe a trend over the years. In December 31, 2020, the working capital turnover ratio was 0.72, indicating that the company generated $0.72 of revenue for every dollar of working capital invested.

Over the following years, the ratio showed an increasing trend, reaching 0.80 in December 31, 2021, 0.93 in December 31, 2022. This uptrend suggests an improvement in the efficiency of CEVA Inc in utilizing its working capital to generate revenue.

However, in December 31, 2023, the working capital turnover ratio decreased to 0.53 before slightly recovering to 0.58 in December 31, 2024. This decline may indicate a decrease in the company's ability to generate revenue from its working capital, which could be attributed to various factors such as changes in sales volume, inventory management, or accounts receivable practices.

Overall, while there were fluctuations in the working capital turnover ratio over the years, CEVA Inc generally demonstrated an improvement in utilizing its working capital efficiently to generate revenue, with some fluctuations in recent years that may warrant further investigation to understand the underlying reasons.