LivaNova PLC (LIVN)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	918,868	872,671	983,387	955,113	932,016	906,532	768,947	799,816	815,048	801,541	805,402	755,296	747,763	698,963	730,570	830,912	843,644	943,425	813,456	639,603
Inventory	US$ in thousands	147,887	161,539	156,446	142,453	129,379	122,041	119,415	114,844	105,840	123,733	127,168	124,523	115,285	178,091	177,246	170,256	164,154	167,756	168,669	161,267
Inventory turnover		6.21	5.40	6.29	6.70	7.20	7.43	6.44	6.96	7.70	6.48	6.33	6.07	6.49	3.92	4.12	4.88	5.14	5.62	4.82	3.97

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $918,868K ÷ $147,887K
= 6.21

The inventory turnover ratio for LivaNova PLC has been relatively stable over the past eight quarters, ranging from 2.19 to 2.80. This ratio measures how efficiently the company manages its inventory by indicating the number of times the inventory is sold and replaced within a specific period.

A higher inventory turnover ratio generally indicates better inventory management and a more efficient use of resources. In this case, LivaNova's inventory turnover has been in the range of 2.19 to 2.80, which suggests that the company is effectively managing its inventory levels and selling its products in a timely manner.

Although the ratio has fluctuated slightly quarter to quarter, the overall trend seems to be fairly consistent within the range, with no significant outliers. It is important to note that a too high or too low inventory turnover ratio could signal potential issues, such as excessive inventory levels or stockouts.

In conclusion, based on the data provided, LivaNova PLC's inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling its products at a steady pace over the analyzed period.