CEVA Inc (CEVA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.04% | 78.32% | 86.29% | 89.29% | 88.40% |
| Operating profit margin | -13.82% | 2.89% | 2.86% | -0.76% | -2.21% |
| Pretax margin | -1.69% | -3.79% | 4.64% | 2.51% | 1.57% |
| Net profit margin | -12.19% | -17.22% | 0.32% | -2.37% | 0.03% |
CEVA Inc's profitability ratios have displayed fluctuating trends over the past five years. The gross profit margin has shown a general upward trend, reaching 88.04% in 2023 from 88.40% in 2019, indicating the company's ability to generate revenue after accounting for the cost of goods sold.
On the other hand, the operating profit margin and net profit margin have been erratic, with significant declines in profitability in 2020 and 2022. The operating profit margin decreased from 2.86% in 2021 to -13.82% in 2023. Similarly, the net profit margin dropped from 0.32% in 2021 to -12.19% in 2023, reflecting challenges in controlling operating expenses and generating bottom-line profits.
The pretax margin, which indicates the company's profitability before accounting for taxes, has also shown inconsistency, with negative values in 2020 and 2021. The pretax margin improved to 4.64% in 2021 but declined to -1.69% in 2023.
Overall, CEVA Inc's profitability ratios suggest a mix of strengths and weaknesses in managing costs, generating operating income, and controlling bottom-line profits. The company may need to focus on improving operational efficiency, cost management, and revenue generation strategies to enhance overall profitability going forward.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.43% | 1.26% | 1.07% | -0.25% | -0.65% |
| Return on assets (ROA) | -3.91% | -7.52% | 0.12% | -0.78% | 0.01% |
| Return on total capital | -5.09% | -2.09% | 1.27% | -0.29% | -0.77% |
| Return on equity (ROE) | -4.49% | -8.96% | 0.14% | -0.91% | 0.01% |
CEVA Inc's profitability ratios have shown a mixed performance over the past five years. The Operating return on assets (Operating ROA) has fluctuated, with a significant decrease in 2023 compared to previous years. This indicates that the company's operating profitability relative to its total assets deteriorated in 2023.
The Return on assets (ROA) also reflects an inconsistent trend, being negative in most years except for a slight positive in 2021. This indicates that the company's efficiency in generating profits from its assets has been a challenge, with 2022 showing the lowest performance.
The Return on total capital has also shown variability, with negative values in most years, indicating that the company struggled to generate returns compared to the total capital employed. The negative trend in 2023 indicates a decline in the company's ability to generate returns from its invested capital.
The Return on equity (ROE) has mirrored the trends in other profitability ratios, showing inconsistency and mostly negative values. This indicates that the company's ability to generate profits for its shareholders has been suboptimal, with 2023 reflecting a decrease in returns compared to equity.
In conclusion, CEVA Inc's profitability ratios highlight challenges in generating profits from assets, total capital, and equity over the past five years. It is crucial for the company to assess its operational efficiency and capital utilization to improve its financial performance in the future.