LivaNova PLC (LIVN)
Payables 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 |
| Payables | US$ in thousands | 80,845 | 74,310 | 68,000 | 73,668 | 85,892 |
| Payables turnover | 11.52 | 12.72 | 12.17 | 13.66 | 8.46 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $931,642K ÷ $80,845K
= 11.52
The payables turnover ratio for LivaNova PLC has shown a fluctuating trend over the past five years. In 2023, it improved to 4.73 compared to the previous year's 4.23, indicating that the company was able to turn over its accounts payable more frequently during the year. This suggests that LivaNova efficiently managed its supplier payments or purchased more goods on credit terms. The 2023 ratio was also higher than the average ratio over the previous four years.
Overall, the increasing trend in the payables turnover ratio is a positive sign of effective liquidity management and potentially favorable relationships with suppliers. However, it is important to further analyze the company's payment terms, cash flow situation, and overall financial health to gain deeper insights into its payables management strategy.
Peer comparison
Dec 31, 2023