CEVA Inc (CEVA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.79 | 6.67 | 6.71 | 5.15 | 5.34 | 6.10 | 5.49 | 4.84 | 5.33 | 5.88 | 5.51 | 4.84 | 5.95 | 6.86 | 7.28 | 6.56 | 6.77 | 6.80 | 8.46 | 8.01 |
| Quick ratio | 6.94 | 5.94 | 6.02 | 4.74 | 4.92 | 5.60 | 4.79 | 3.87 | 4.34 | 4.41 | 4.40 | 4.39 | 5.01 | 5.00 | 4.67 | 4.19 | 4.40 | 4.36 | 5.75 | 5.16 |
| Cash ratio | 5.82 | 4.73 | 4.80 | 3.74 | 3.98 | 4.65 | 3.91 | 3.29 | 3.57 | 3.54 | 3.48 | 3.73 | 3.90 | 3.88 | 3.88 | 3.29 | 3.32 | 3.32 | 4.72 | 4.31 |
Based on the data provided, Ceva Inc. has exhibited consistently strong liquidity positions over the past eight quarters, as indicated by its current ratio, quick ratio, and cash ratio.
The current ratio measures the company's ability to meet its short-term obligations with its current assets. Ceva Inc.'s current ratio has shown a positive trend, improving from 5.34 in Q4 2022 to 7.79 in Q4 2023. This indicates that the company has significantly more current assets than current liabilities, providing a comfortable cushion to cover its short-term obligations.
Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventories from current assets, also demonstrates Ceva Inc.'s robust liquidity position. The quick ratio has also improved steadily over the quarters, from 5.34 in Q4 2022 to 7.79 in Q4 2023, indicating the company's ability to meet its short-term liabilities even without relying on selling inventory.
Furthermore, the cash ratio reflects the company's ability to cover its short-term liabilities with cash and cash equivalents alone. Ceva Inc.'s cash ratio has also shown a positive trend, increasing from 4.40 in Q4 2022 to 6.66 in Q4 2023. This suggests that the company has a strong cash position and could easily settle its short-term obligations using readily available cash resources.
In conclusion, based on the liquidity ratios analyzed, Ceva Inc. appears to have a strong liquidity position, with increasing current, quick, and cash ratios over the past eight quarters. This indicates that the company is well-equipped to meet its short-term financial obligations and may have the flexibility to capitalize on opportunities as they arise.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Ceva Inc. has shown some fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the cash conversion cycle was 77.39 days and 77.58 days, respectively, indicating a relatively stable performance in managing cash flow within the business. However, Q2 2023 saw a slight increase to 79.07 days, which may suggest potential inefficiencies in the company's working capital management during that period.
Comparing these figures to previous quarters, Q1 2023 had a cash conversion cycle of 73.47 days, showing a longer cycle than in Q4 2022 (57.79 days) and Q3 2022 (49.02 days). This indicates that Ceva Inc. took longer to convert its investments in inventory and other resources into cash in Q1 2023 compared to the previous quarters.
Notably, the cash conversion cycle experienced a significant spike in Q2 2022, reaching 41.81 days, and peaked in Q1 2022 at 9.55 days. These low figures suggest that the company was efficient in managing its working capital and turning it into cash during those periods.
Overall, Ceva Inc. has demonstrated some variability in its cash conversion cycle performance, with fluctuations indicating potential changes in the efficiency of its working capital management. Further analysis of the underlying factors contributing to these fluctuations would be beneficial in understanding the company's overall cash flow management strategy.