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.
Peer comparison
Dec 31, 2023
Dec 31, 2023