LivaNova PLC (LIVN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,207,181	1,181,723	1,134,930	1,096,381	1,093,987	1,057,777	1,026,749	989,010	971,142	983,022	925,125	933,289	932,621	932,112	974,900	901,723	907,604	925,639	964,065	1,062,089
Property, plant and equipment	US$ in thousands	170,260	169,317	158,055	152,237	154,181	149,302	149,568	149,060	147,187	139,162	143,312	147,957	150,066	152,728	157,415	157,892	163,805	190,509	185,670	183,534
Fixed asset turnover		7.09	6.98	7.18	7.20	7.10	7.08	6.86	6.63	6.60	7.06	6.46	6.31	6.21	6.10	6.19	5.71	5.54	4.86	5.19	5.79

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,207,181K ÷ $170,260K
= 7.09

The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue.

Analyzing the fixed asset turnover of LivaNova PLC over the past few years, we can observe some fluctuations in the ratio. From March 31, 2020, to December 31, 2024, the fixed asset turnover ratio has generally shown an increasing trend with some variations within the period.

The ratio ranged from 5.79 on March 31, 2020, to a peak of 7.20 on March 31, 2024, indicating an improvement in the company's efficiency in utilizing its fixed assets to drive revenue. However, we noticed a slight decline to 6.98 on September 30, 2024, before bouncing back to 7.09 on December 31, 2024.

Overall, the increasing trend in the fixed asset turnover ratio suggests that LivaNova PLC has been more effective in generating sales relative to its investment in fixed assets over the years. This trend indicates improved operational efficiency and better asset utilization, which could potentially lead to higher profitability in the long run.