CEVA Inc (CEVA)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 113.55 | 84.71 | 81.65 | 113.60 | 118.55 |
| Number of days of payables | days | 36.16 | 48.12 | 31.76 | 30.36 | 25.32 |
| Cash conversion cycle | days | 77.39 | 36.59 | 49.89 | 83.24 | 93.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 113.55 – 36.16
= 77.39
The cash conversion cycle of CEVA Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle increased significantly to 77.39 days from 36.59 days in 2022. This suggests that CEVA Inc took longer to convert its investments into cash during the most recent year.
Comparing to prior years, the company had a more efficient cash conversion cycle in 2022 and 2021 at 36.59 days and 49.89 days, respectively. However, in 2020 and 2019, the cash conversion cycle was higher at 83.24 days and 93.23 days, indicating a longer time for the company to convert its resources into cash during those periods.
Overall, CEVA Inc should focus on managing its working capital to improve efficiency and shorten its cash conversion cycle, which would lead to better liquidity and operational performance.
Peer comparison
Dec 31, 2023