CEVA Inc (CEVA)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.09 | 7.60 | 8.30 | 7.69 | 7.43 | 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 |
| Quick ratio | 5.36 | 5.63 | 6.34 | 5.93 | 6.03 | 5.13 | 5.19 | 3.90 | 4.19 | 4.86 | 4.37 | 3.98 | 4.37 | 4.74 | 4.34 | 3.95 | 4.62 | 5.47 | 6.22 | 5.41 |
| Cash ratio | 5.36 | 5.63 | 6.34 | 5.93 | 6.03 | 5.13 | 5.19 | 3.90 | 4.19 | 4.86 | 4.37 | 3.98 | 4.37 | 4.74 | 4.34 | 3.95 | 4.62 | 5.47 | 6.22 | 5.41 |
CEVA Inc's liquidity ratios have shown varying trends over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been healthy and increasing from March 2020 to June 2024. Starting at 6.56 in March 2020, the current ratio reached a peak of 8.30 in June 2024, indicating that the company had more than enough current assets to cover its short-term obligations. However, there was a slight dip to 7.09 by December 2024, suggesting a potential decrease in liquidity.
In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, the trend has been less consistent. From a high of 6.22 in June 2020, the quick ratio fluctuated but generally showed a decreasing trend, falling to 5.36 by December 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets deteriorated over this period.
The cash ratio, which is the strictest measure of liquidity as it only considers cash and cash equivalents, also exhibited a downward trend over the same period. Starting at 5.41 in March 2020, the cash ratio decreased to 5.36 by December 2024. This suggests that CEVA Inc may have had a lower ability to pay off its short-term liabilities solely with its cash reserves.
In conclusion, while CEVA Inc's current ratio remained strong over the years, its quick ratio and cash ratio showed a declining trend, indicating potential challenges in maintaining liquidity levels in the short term. It would be important for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34.98 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
CEVA Inc's cash conversion cycle has remained consistent at 0.00 days from March 2020 to December 2024, indicating that the company is efficiently managing its cash flow in terms of converting its inventory into cash. However, there was a notable increase in the cash conversion cycle to 34.98 days on September 30, 2023. This indicates a potential delay in converting inventory into cash during that period, which may require further investigation to understand the underlying reasons for the change. Overall, the trend of a low or zero cash conversion cycle suggests that CEVA Inc is effectively managing its working capital and liquidity position.