CEVA Inc (CEVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.06% | 88.04% | 79.91% | 86.29% | 89.29% |
| Operating profit margin | -7.06% | -13.82% | 3.13% | 1.24% | -0.76% |
| Pretax margin | -2.58% | -8.42% | -3.79% | 4.64% | 2.51% |
| Net profit margin | 4.57% | -12.19% | -17.22% | 0.32% | -2.37% |
CEVA Inc's gross profit margin has shown a decreasing trend from 89.29% in 2020 to 79.91% in 2022, before slightly recovering to 88.06% in 2024. This indicates a fluctuation in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin of CEVA Inc was negative in 2020 and continued to be relatively low in 2021 and 2024, indicating challenges in controlling operating expenses. The margin improved in 2022 but deteriorated significantly in 2023, indicating potential inefficiencies in operations during that period.
The pretax margin of CEVA Inc fluctuated over the years, ranging from positive in 2020 and 2021 to negative in subsequent years. A negative pretax margin suggests that the company's earnings before taxes were insufficient to cover operating costs and other expenses, potentially indicating financial difficulties.
CEVA Inc's net profit margin was negative in 2020 and 2022-2023, reflecting challenges in generating significant bottom-line profits after all expenses are deducted. However, there was a notable improvement in 2024, with a net profit margin of 4.57%, indicating a positive turn towards profitability.
In conclusion, CEVA Inc's profitability ratios have shown fluctuations and challenges over the years, with declines in some margins but signs of improvement in others. Further analysis and monitoring of the company's financial performance are advisable to assess its long-term profitability sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.44% | -4.43% | 1.37% | 0.46% | -0.25% |
| Return on assets (ROA) | 1.58% | -3.91% | -7.52% | 0.12% | -0.78% |
| Return on total capital | 0.00% | -5.09% | 2.88% | 2.54% | -0.29% |
| Return on equity (ROE) | 1.83% | -4.49% | -8.96% | 0.14% | -0.91% |
Based on the data provided, we observe fluctuations in CEVA Inc's profitability ratios over the years:
1. Operating Return on Assets (Operating ROA):
- CEVA Inc's Operating ROA was negative at -0.25% in 2020 but improved to 0.46% in 2021. Subsequently, it showed significant improvement, reaching 1.37% in 2022. However, there was a notable decline in 2023 to -4.43% and further decrease to -2.44% in 2024. Despite the volatility, the company demonstrated positive operating returns in most years.
2. Return on Assets (ROA):
- ROA was negative in 2020 at -0.78% but turned positive at 0.12% in 2021. However, the ratio declined significantly to -7.52% in 2022 and continued to be negative at -3.91% in 2023. There was a positive turnaround in 2024, with ROA improving to 1.58%. The company struggled with profitability based on total assets in some years.
3. Return on Total Capital:
- CEVA Inc's Return on Total Capital was negative at -0.29% in 2020 but improved to 2.54% in 2021. The ratio further increased to 2.88% in 2022 before experiencing a downturn to -5.09% in 2023. In 2024, the company reported a return of 0.00%, indicating capital was not generating additional returns in that year.
4. Return on Equity (ROE):
- ROE was negative at -0.91% in 2020 but turned slightly positive at 0.14% in 2021. However, the company faced challenges with ROE, reflecting negative -8.96% in 2022 and -4.49% in 2023. There was an improvement in 2024, with ROE standing at 1.83%. CEVA Inc struggled to generate favorable returns for its equity holders in some years.
Overall, CEVA Inc's profitability ratios show a mixed performance over the years, with fluctuations indicating varying levels of efficiency in utilizing assets and generating returns for both total capital and equity. Monitoring these ratios can provide insights into the company's financial health and performance.