CEVA Inc (CEVA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.15 | 1.19 | 1.19 | 1.18 | 1.18 |
The solvency ratios of CEVA Inc indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00, suggesting that the company operates with minimal debt compared to its total assets, capital structure, and shareholder equity.
The financial leverage ratio has shown slight fluctuations, ranging from 1.15 to 1.19, but has generally remained stable around the 1.18 to 1.19 range over the last few years. This indicates that the company's reliance on debt financing in relation to its equity has been moderate and relatively consistent.
Overall, the solvency ratios demonstrate that CEVA Inc has maintained a conservative approach to debt management, which has contributed to a strong financial position and stability in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | -13.62 | 8.35 | -1.72 | -3.47 |
CEVA Inc's interest coverage ratio has been fluctuating significantly over the past five years. In 2023, the interest coverage ratio was not available. In 2022, the ratio stood at -13.62, indicating that the company's operating income was insufficient to cover its interest expenses, posing a potential financial risk.
However, there was a notable improvement in 2021 with an interest coverage ratio of 8.35, suggesting that the company's operating income was more than sufficient to cover its interest obligations. This demonstrates a positive trend in the company's ability to meet its interest payments from its operating earnings in 2021.
In 2020 and 2019, the interest coverage ratios were -1.72 and -3.47 respectively, indicating financial distress as the company struggled to generate enough operating income to cover its interest expenses during those periods.
Overall, it is important for CEVA Inc to maintain a healthy interest coverage ratio above 1 to ensure its ability to service its debt obligations and avoid potential financial difficulties in the future.