CEVA Inc (CEVA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.16 | 1.15 | 1.19 | 1.19 | 1.18 |
CEVA Inc has shown a consistently strong solvency position over the years based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been calculated at 0.00 for the years 2020 to 2024, indicating that the company has not relied heavily on debt to finance its operations and investments. This suggests a low level of financial risk associated with debt obligations.
Additionally, the financial leverage ratio has remained relatively stable over the five-year period, ranging from 1.15 to 1.19, with a slight fluctuation. A financial leverage ratio around 1 suggests that the company has a balanced capital structure with a reasonable mix of debt and equity financing.
Overall, these solvency ratios reflect CEVA Inc's prudent financial management and strong financial position, as they indicate a conservative approach to debt financing and a sustainable capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 18.77 | 16.76 | -1.72 |
Based on the provided data for CEVA Inc's interest coverage ratio, there are some notable trends over the years:
1. December 31, 2020: The interest coverage ratio was at -1.72, indicating that the company's earnings were not sufficient to cover its interest expenses. This could be a concerning sign of financial distress or poor profitability.
2. December 31, 2021: The interest coverage ratio significantly improved to 16.76, suggesting that CEVA Inc's earnings were more than sufficient to cover its interest obligations. This is a positive indicator of improved financial health and risk management.
3. December 31, 2022: The interest coverage ratio further increased to 18.77, demonstrating continued strength in the company's ability to meet its interest payments through its earnings. This trend is favorable and indicates a lower financial risk for the company.
4. December 31, 2023 and December 31, 2024: The data provided shows "—", which may indicate that the figures are not available or not applicable for these years. As such, it is unclear how CEVA Inc's interest coverage ratio continued to evolve beyond 2022.
In summary, CEVA Inc's interest coverage ratio has shown a significant improvement from a negative position in 2020 to strong positive levels in the following years. This suggests that the company has been able to better manage its debt and interest obligations, indicating improved financial stability and operational efficiency. However, the lack of data for 2023 and 2024 makes it challenging to assess the sustainability of this positive trend in the longer term.