LivaNova PLC (LIVN)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	939,397	931,642	945,014	827,792	1,006,240
Payables	US$ in thousands	69,726	80,845	74,310	68,000	73,668
Payables turnover		13.47	11.52	12.72	12.17	13.66

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $939,397K ÷ $69,726K
= 13.47

The payables turnover ratio for LivaNova PLC has been relatively stable over the past five years, ranging from 11.52 to 13.66. This ratio indicates the company's efficiency in managing its payables by measuring how many times during a period the company pays off its suppliers. A higher turnover ratio generally signifies that the company is paying its suppliers more frequently.

In 2020, the payables turnover was 13.66, reflecting that LivaNova was able to pay off its suppliers 13.66 times in that year. However, in the following years, the ratio slightly decreased to 12.17 in 2021, 12.72 in 2022, and 11.52 in 2023. This downward trend may indicate a slower pace in paying off suppliers, which could potentially strain supplier relationships or result in missed discounts for early payment.

In the most recent year, the payables turnover ratio improved to 13.47 in 2024, suggesting that LivaNova managed to increase the frequency of paying its suppliers compared to the previous year. Overall, the company's payables turnover ratio presents a mixed picture, with fluctuations over time that may require further analysis to understand the underlying reasons and implications for the company's working capital management and vendor relationships.