CEVA Inc (CEVA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 30,307 | 31,250 | 27,449 | 31,224 | 28,307 |
| Total current liabilities | US$ in thousands | 26,887 | 33,278 | 35,440 | 28,180 | 26,378 |
| Quick ratio | 6.94 | 4.92 | 4.34 | 5.01 | 4.40 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($23,287K
+ $133,101K
+ $30,307K)
÷ $26,887K
= 6.94
The quick ratio of CEVA Inc has exhibited a positive trend over the past five years, indicating a strengthening liquidity position. The ratio has increased from 4.40 in 2019 to 6.94 in 2023. This signifies that CEVA Inc has a higher level of highly liquid assets relative to its current liabilities, implying a greater ability to cover its short-term obligations without relying heavily on inventory.
In 2023, the quick ratio of 6.94 indicates that CEVA Inc has $6.94 of liquid assets available for every $1 of current liabilities. This suggests a robust liquidity position, providing a sense of comfort that the company can meet its short-term payment obligations efficiently.
The consistent improvement in the quick ratio over the years reflects positively on CEVA Inc's liquidity management and ability to navigate short-term financial challenges. Overall, the upward trend in the quick ratio is a positive indicator of the company's financial health and its ability to weather potential liquidity shocks.
Peer comparison
Dec 31, 2023