CEVA Inc (CEVA)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	21.28	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	107.25	91.88	89.92	93.68	80.30	74.18	75.92	65.15	81.65	83.07	89.43	88.04	113.60	105.25	72.93	96.99	118.55	121.97	102.80	91.40
Number of days of payables	days	27.17	15.66	12.69	20.12	21.35	25.32	34.11	55.60	31.76	48.53	68.50	28.77	30.36	28.39	41.50	31.16	25.32	51.95	23.25	34.21
Cash conversion cycle	days	80.08	97.50	77.23	73.56	58.95	48.86	41.81	9.55	49.89	34.54	20.93	59.28	83.24	76.86	31.43	65.83	93.23	70.02	79.54	57.19

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 107.25 – 27.17
= 80.08

The cash conversion cycle of Ceva Inc. has shown variations over the past eight quarters. In the most recent quarter, Q4 2023, the cash conversion cycle stood at 77.39 days, slightly lower than the previous quarter at 77.58 days. Despite this, the cycle has been trending upwards since Q1 2023 when it was at 73.47 days.

Looking back further, the cash conversion cycle fluctuated significantly throughout 2022, with the highest point reached in Q2 at 79.07 days and the lowest point in Q1 at 9.55 days. This indicates potential issues with managing cash flows efficiently during the second quarter of 2022.

Overall, the trend suggests that Ceva Inc. may have experienced challenges in effectively managing its working capital and converting assets into cash during certain quarters. Further analysis and proactive management may be required to address fluctuations and optimize the cash conversion cycle for improved financial performance.