LivaNova PLC (LIVN)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.25	5.99	5.65	5.24	5.09	5.57	5.52	5.55	5.30	5.71	5.23	5.12	5.03	5.12	5.35	4.99	4.92	4.82	5.18	4.71
DSO	days	58.40	60.90	64.61	69.72	71.76	65.52	66.08	65.81	68.82	63.90	69.81	71.22	72.54	71.27	68.21	73.15	74.14	75.67	70.48	77.44

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.25
= 58.40

Days Sales Outstanding (DSO) is a key financial metric that indicates how long it takes for a company to collect revenue after a sale is made. Analyzing the DSO trend of LivaNova PLC based on the provided data, we observe fluctuations in the average number of days it takes for the company to collect its accounts receivable over the specified time periods.

From March 31, 2020, to December 31, 2024, LivaNova's DSO ranged from a high of 77.44 days to a low of 58.40 days. The trend shows some variability, but overall demonstrates a decreasing pattern towards the latter years, which is generally positive as it indicates the company is collecting its revenue more quickly.

Specifically, there was a notable decrease in DSO from the beginning of the data period, with the metric dropping to its lowest point of 58.40 days by December 31, 2024. This improvement suggests that LivaNova has been more efficient in collecting its accounts receivable, which can enhance cash flow and liquidity.

While the fluctuation in DSO indicates that the company may have experienced changes in its sales and collection processes over time, the overall decreasing trend is a positive sign of effective accounts receivable management. It indicates improved efficiency in converting sales into cash, which is crucial for sustaining and growing a business. Monitoring DSO helps assess the company's liquidity position and effectiveness in managing its working capital.