CEVA Inc (CEVA)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-16,571	-22,080	-21,722	-15,724	-10,463	-611	3,442	5,306	3,508	4,359	2,667	-430	-763	288	19	-655	-1,924	-3,210	-791	-1,269
Total assets	US$ in thousands	304,085	295,987	300,273	311,134	308,442	294,814	319,407	335,040	328,659	317,711	310,625	315,533	306,952	301,564	296,306	295,917	297,021	293,925	284,765	286,832
Operating ROA		-5.45%	-7.46%	-7.23%	-5.05%	-3.39%	-0.21%	1.08%	1.58%	1.07%	1.37%	0.86%	-0.14%	-0.25%	0.10%	0.01%	-0.22%	-0.65%	-1.09%	-0.28%	-0.44%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-16,571K ÷ $304,085K
= -5.45%

The operating return on assets (operating ROA) of Ceva Inc. has reflected a downward trend over the past eight quarters. The data shows that the operating ROA was negative in the last four quarters, indicating that the company's operating income generated from its assets was insufficient to cover its operating expenses.

The significant decline in operating ROA from 1.58% in Q1 2022 to -4.43% in Q4 2023 suggests that Ceva Inc. has been experiencing challenges in effectively utilizing its assets to generate profits. This could be a result of various factors such as declining sales, increasing operating costs, or ineffective asset management.

It is essential for Ceva Inc. to focus on improving its operational efficiency and asset utilization to enhance its operating ROA and overall financial performance. Management should consider implementing cost-saving measures, increasing revenue streams, and optimizing asset allocation to reverse the negative trend in operating ROA and drive sustainable profitability.