CEVA Inc (CEVA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -13,467 | -5,409 | 3,508 | -763 | -1,924 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 264,341 | 258,871 | 276,732 | 260,889 | 251,157 |
| Return on total capital | -5.09% | -2.09% | 1.27% | -0.29% | -0.77% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-13,467K ÷ ($—K + $264,341K)
= -5.09%
CEVA Inc's return on total capital has been fluctuating over the past five years. The company experienced negative returns on total capital in 2020 and 2023, with -5.09% and -2.09% respectively. However, in 2021, there was a slight improvement with a return of 1.27%. This was followed by a decrease in 2019 and 2020 with returns of -0.29% and -0.77% respectively. The negative returns in recent years indicate that the company may not be effectively generating profits from its total capital investments. CEVA Inc should focus on improving its operational efficiency and profitability to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023