CEVA Inc (CEVA)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	94,171	85,771	107,596	105,879	89,577
Revenue	US$ in thousands	106,939	97,419	134,648	122,706	100,326
Gross profit margin		88.06%	88.04%	79.91%	86.29%	89.29%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $94,171K ÷ $106,939K
= 88.06%

The gross profit margin of CEVA Inc has displayed some fluctuations over the past five years. In December 2020, the gross profit margin stood at a robust 89.29%, indicating the company's ability to efficiently generate profit from its core operations. However, by December 2021, the margin had slightly decreased to 86.29%, suggesting a potential decrease in profitability or an increase in production costs.

In the following years, the gross profit margin continued to fluctuate. By December 2022, it had decreased further to 79.91%, indicating a possible challenge in maintaining profitability or managing costs effectively. However, there was a notable improvement by December 2023, with the gross profit margin rising to 88.04%, showcasing a potential recovery in profitability.

In the most recent period, December 2024, the gross profit margin remained relatively stable at 88.06%, suggesting that the company may have implemented strategies to enhance operational efficiency or control costs effectively. Overall, while the gross profit margin of CEVA Inc has shown some variability, it is crucial for the company to continue monitoring and managing its operational performance to ensure sustainable profitability in the future.