CEVA Inc (CEVA)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -7,545 -10,406 -10,499 -15,807 -13,467 -13,270 -9,356 -4,289 -1,201 3,915 4,412 6,276 4,478 4,359 2,667 -430 -763 750 481 -193
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Return on total capital -2.83% -3.92% -3.98% -6.03% -5.09% -5.17% -3.62% -1.65% -0.46% 1.55% 1.61% 2.26% 1.62% 1.62% 1.01% -0.16% -0.29% 0.29% 0.19% -0.08%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-7,545K ÷ ($—K + $266,556K)
= -2.83%

CEVA Inc's return on total capital has experienced fluctuations over the analyzed period, reflecting changes in the company's efficiency in generating returns from its total invested capital. The ratio started at a negative figure of -0.08% as of March 31, 2020, indicating a slightly inefficient use of capital. Subsequently, the return on total capital improved, reaching peaks of 2.26% as of March 31, 2022, and 1.62% as of September 30, 2021, and December 31, 2021.

However, the ratio declined significantly in the latter half of the analyzed period, dropping to negative percentages, with a notable decrease to -6.03% as of March 31, 2024. This downward trend suggests potential challenges in efficiently utilizing the capital to generate favorable returns. By the end of the period, as of December 31, 2024, the return on total capital improved slightly to -2.83%.

CEVA Inc should closely monitor and address the decline in return on total capital to enhance financial performance and ensure efficient allocation of capital resources for sustainable growth and profitability in the future.