CEVA Inc (CEVA)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 1,338 | 1,338 | 1,338 | 2,676 | 3,328 | 11,242 | 12,369 | 11,313 | 10,431 | 2,564 | 1,807 | 1,975 | 875 | 1,488 | 1,868 | 2,249 | 2,241 | 1,581 | 831 |
| Interest coverage | — | -7.78 | -7.85 | -11.81 | -5.03 | -3.99 | -0.83 | -0.35 | -0.11 | 0.38 | 1.72 | 3.47 | 2.27 | 4.98 | 1.79 | -0.23 | -0.34 | 0.33 | 0.30 | -0.23 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-7,545K ÷ $0K
= —
CEVA Inc's interest coverage ratio has shown significant fluctuations over the past few years. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
From March 31, 2020, to September 30, 2021, CEVA Inc's interest coverage ratio improved gradually, reaching a peak of 4.98 on September 30, 2021. This suggests that the company was able to comfortably cover its interest obligations during this period.
However, starting from March 31, 2022, the interest coverage ratio began to decline, dropping to negative values by December 31, 2024. This indicates a concerning trend where the company may be struggling to generate sufficient earnings to meet its interest payments.
The sharp decrease in the interest coverage ratio from March 31, 2024, to December 31, 2024, from -0.35 to an undefined value, signals a worsening financial position for CEVA Inc in terms of its ability to service its debt. Investors and creditors may view this trend negatively as it raises questions about the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024