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.