LivaNova PLC (LIVN)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.31	5.91	6.15	6.07	6.21	5.40	6.29	6.70	7.20	7.43	6.44	6.96	7.70	6.48	6.33	6.07	6.49	3.92	4.12	4.88
DOH	days	57.87	61.76	59.31	60.12	58.74	67.56	58.07	54.44	50.67	49.14	56.68	52.41	47.40	56.34	57.63	60.18	56.27	93.00	88.55	74.79

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.31
= 57.87

The Days of Inventory on Hand (DOH) metric for LivaNova PLC indicates the average number of days the company holds inventory before selling it.

Analyzing the trend in LivaNova's DOH over the last several quarters, we observe fluctuations in the metric. The trend suggests that the company has been making efforts to manage its inventory effectively.

In the latest reported period, December 31, 2024, LivaNova had a DOH of 57.87 days. This implies that, on average, it took the company approximately 57.87 days to convert its inventory into sales during that quarter.

Over the past few quarters, the company's DOH has ranged from a low of 47.40 days on December 31, 2021, to a high of 93.00 days on September 30, 2020. The increasing trend from 47.40 days in December 2021 to 61.76 days in September 30, 2024, indicates that LivaNova may be facing challenges in managing its inventory efficiently during these quarters.

It is important for the company to analyze the factors contributing to these fluctuations in order to optimize its inventory levels and improve its working capital management. A high DOH can tie up capital in inventory and increase carrying costs, while a low DOH could lead to stockouts and potential lost sales. Maintaining an optimal level of inventory is crucial for balancing costs and sales efficiency in the company's operations.