CEVA Inc (CEVA)

Working capital 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
Total current assets	US$ in thousands	209,371	171,262	175,272	180,562	177,625	171,169	173,572	197,304	188,980	180,185	161,248	178,673	167,559	177,598	182,476	181,199	178,552	174,799	180,486	183,790
Total current liabilities	US$ in thousands	26,887	25,686	26,127	35,037	33,278	28,062	31,589	40,787	35,440	30,638	29,281	36,919	28,180	25,891	25,078	27,613	26,378	25,694	21,332	22,959
Working capital turnover		0.57	0.85	0.87	0.94	0.98	0.92	0.95	0.84	0.80	0.78	0.83	0.72	0.72	0.66	0.63	0.61	0.57	0.54	0.49	0.48

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $103,142K ÷ ($209,371K – $26,887K)
= 0.57

The working capital turnover ratio of Ceva Inc. has exhibited a declining trend over the past eight quarters. The ratio decreased from 0.93 in Q4 2022 to 0.53 in Q4 2023, indicating a reduction in the efficiency of the company in utilizing its working capital to generate sales revenue.

A working capital turnover ratio below 1 suggests that Ceva Inc. is not efficiently using its working capital to support its sales activities. This could be a cause for concern as it may indicate inefficiencies in managing the company's current assets and liabilities.

The decreasing trend in the working capital turnover ratio could be a red flag for investors and creditors as it highlights potential issues with the company's liquidity and operational efficiency. Further analysis of Ceva Inc.'s working capital management practices and operational strategies may be warranted to address these concerns and improve overall financial performance.