CEVA Inc (CEVA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	23,287	20,116	33,153	21,143	22,803
Short-term investments	US$ in thousands	133,101	112,488	93,217	88,754	64,867
Total current liabilities	US$ in thousands	26,887	33,278	35,440	28,180	26,378
Cash ratio		5.82	3.98	3.57	3.90	3.32

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($23,287K + $133,101K) ÷ $26,887K
= 5.82

The cash ratio of CEVA Inc has shown a positive trend over the past five years. The ratio has been consistently increasing from 3.32 in 2019 to 5.82 in 2023. This indicates that the company has been able to improve its ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests that the company has a stronger liquidity position, which can be beneficial for meeting financial obligations and managing unexpected expenses. Overall, the increasing trend of the cash ratio reflects positively on CEVA Inc's liquidity management over the years.