CEVA Inc (CEVA)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-8,786	-3,281	-6,927	-12,454	-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
Total stockholders’ equity	US$ in thousands	266,556	265,770	263,786	262,349	264,341	256,700	258,584	259,870	258,871	252,297	273,715	278,079	276,732	269,742	265,016	261,649	260,889	256,571	252,381	249,272
ROE		-3.30%	-1.23%	-2.63%	-4.75%	-4.49%	-5.34%	-12.01%	-10.14%	-8.96%	-8.42%	0.33%	0.84%	0.14%	-1.06%	-1.29%	-1.84%	-0.91%	0.02%	0.62%	0.46%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-8,786K ÷ $266,556K
= -3.30%

CEVA Inc's return on equity (ROE) has fluctuated significantly over the past few years, reflecting the company's varying profitability and efficiency in generating returns for its shareholders.

From March 31, 2020, to June 30, 2022, the ROE remained positive, albeit at relatively low levels, indicating that the company was able to generate some returns for its shareholders during this period.

However, starting from September 30, 2022, the ROE took a sharp decline and turned negative, signaling that the company was not efficiently utilizing its equity to generate profits. This negative trend persisted until December 31, 2024, with ROE fluctuating between -12.01% and -1.23%.

The declining trend in ROE suggests potential issues with the company's profitability, asset management, or leverage levels. CEVA Inc may need to reassess its business strategies, cost structures, and capital allocation to improve its ROE and create more value for its shareholders in the future.