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.
Peer comparison
Dec 31, 2023