LivaNova PLC (LIVN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	931,642	945,014	827,792	1,006,240	726,540
Inventory	US$ in thousands	147,887	129,379	105,840	115,285	164,154
Inventory turnover		6.30	7.30	7.82	8.73	4.43

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $931,642K ÷ $147,887K
= 6.30

LivaNova PLC's inventory turnover has fluctuated over the past five years. In 2021, the company had the highest inventory turnover ratio of 3.11, indicating that it sold its inventory more than 3 times during the year. This could suggest efficient management of inventory levels. However, in 2019, the inventory turnover ratio was the lowest at 1.97, indicating a slower rate of inventory turnover.

Overall, LivaNova's inventory turnover ratio has averaged around 2.51 over the five-year period. This suggests that, on average, the company has been able to sell its entire inventory slightly more than 2 times a year. Analyzing inventory turnover ratios can provide insights into a company's inventory management efficiency and its ability to convert inventory into sales.