LivaNova PLC (LIVN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,093,990 | 973,933 | 923,733 | 894,804 | 1,069,080 |
| Property, plant and equipment | US$ in thousands | 154,181 | 147,187 | 150,066 | 163,805 | 181,354 |
| Fixed asset turnover | 7.10 | 6.62 | 6.16 | 5.46 | 5.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,093,990K ÷ $154,181K
= 7.10
Fixed asset turnover measures the efficiency with which LivaNova PLC is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is able to generate more sales from its fixed assets.
LivaNova's fixed asset turnover has shown a general increasing trend over the past five years, with values of 7.48 in 2023, 6.94 in 2022, 6.90 in 2021, 5.70 in 2020, and 5.98 in 2019. This improvement suggests that the company has become more efficient in utilizing its fixed assets to generate sales.
The high fixed asset turnover ratio signifies that LivaNova is effectively leveraging its fixed assets to generate revenue. This could result from factors such as effective asset management, optimal utilization of resources, or increased sales efficiency.
Overall, the increasing trend in LivaNova's fixed asset turnover ratio indicates that the company has been successful in maximizing the revenue generated from its fixed assets over the years. It reflects positively on the company's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023