LivaNova PLC (LIVN)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.33	5.09	5.32	4.98	4.85
DSO	days	57.64	71.76	68.62	73.24	75.20

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.33
= 57.64

The days sales outstanding (DSO) of LivaNova PLC has shown a declining trend over the five-year period from 2020 to 2024. In 2020, the DSO was 75.20 days, which decreased to 73.24 days in 2021, further decreased to 68.62 days in 2022, slightly increased to 71.76 days in 2023, and significantly dropped to 57.64 days in 2024.

This decreasing trend indicates that LivaNova PLC has been able to collect its accounts receivable more efficiently over the years, which could be a positive signal of effective credit management or improved collection processes. A lower DSO suggests that the company is converting its sales into cash more rapidly, which can improve liquidity and working capital management.

However, it is essential to monitor this metric continuously to ensure that the decrease in DSO is not negatively impacting the company's relationships with customers or affecting sales volumes. Additionally, a further analysis of other factors such as industry benchmarks and peer comparisons would provide a more comprehensive understanding of LivaNova PLC's performance in managing its accounts receivable efficiently.