CEVA Inc (CEVA)

Quick ratio

		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	US$ in thousands	23,287	17,082	27,511	24,483	20,116	29,072	19,289	39,778	33,153	34,278	26,706	53,662	21,143	22,067	29,979	22,903	22,803	14,851	24,527	21,469
Short-term investments	US$ in thousands	133,101	104,513	97,875	106,433	112,488	101,349	104,075	94,413	93,217	74,149	75,324	83,884	88,754	78,506	67,293	67,909	64,867	70,462	76,123	77,587
Receivables	US$ in thousands	30,307	31,063	31,872	35,007	31,250	26,763	27,962	23,508	27,449	26,581	26,697	24,631	31,224	28,979	19,781	24,925	28,307	26,813	22,019	19,351
Total current liabilities	US$ in thousands	26,887	25,686	26,127	35,037	33,278	28,062	31,589	40,787	35,440	30,638	29,281	36,919	28,180	25,891	25,078	27,613	26,378	25,694	21,332	22,959
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

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 been fluctuating over the last eight quarters, ranging from a low of 4.84 in Q1 2022 to a high of 7.79 in Q4 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.

Overall, Ceva Inc. has shown an improving trend in its quick ratio over the quarters, with a general increase from Q1 2022 to Q4 2023. This suggests that the company has been able to enhance its liquidity position and efficient management of its current assets in relation to its current liabilities.

The company's quick ratio exceeding 1.0 in all quarters indicates that Ceva Inc. has ample liquid assets to cover its short-term obligations. This signifies a reduced risk of financial distress and insolvency, showcasing the company's ability to manage its working capital effectively. However, the fluctuation in the quick ratio values indicates some volatility in the company's liquidity management, which may require further analysis to understand the underlying reasons for these fluctuations.

In conclusion, based on the trend observed, Ceva Inc. has demonstrated a strong liquidity position and improved ability to meet its short-term obligations over the quarters, reflecting positively on its financial health and stability.