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.