LivaNova PLC (LIVN)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	930,748	959,040	952,148	929,988	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
Inventory	US$ in thousands	147,566	162,264	154,722	153,176	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
Inventory turnover		6.31	5.91	6.15	6.07	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $930,748K ÷ $147,566K
= 6.31

The inventory turnover of LivaNova PLC has shown some fluctuations over the years based on the provided data. Generally, the inventory turnover ratio measures how efficiently a company manages its inventory levels by indicating how many times a company's inventory is sold and replaced over a specific period.

From March 31, 2020, to December 31, 2024, LivaNova PLC's inventory turnover has fluctuated between 3.92 and 7.70. The trend shows an overall improvement in the management of the company's inventory levels. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which is generally a positive sign as it implies efficient inventory management and potentially less likelihood of obsolete inventory.

Between September 30, 2023, and September 30, 2024, there was a slight decrease in the inventory turnover ratio from 6.21 to 5.91. This decrease may suggest that the company took longer to sell its inventory during this period, indicating a potential slowdown in sales or stocking excess inventory levels.

It is important for LivaNova PLC to monitor its inventory turnover ratio continuously to ensure it aligns with industry standards and business needs. A balance needs to be struck between ensuring enough inventory to meet customer demand and avoiding the costs associated with excess inventory or potential obsolescence.

Overall, the data indicates that LivaNova PLC has been effectively managing its inventory turnover, with occasional fluctuations that may require further analysis to understand the underlying reasons and implications for the company's operations and financial performance.