LivaNova PLC (LIVN)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 6.25 5.99 5.65 5.24 5.09 5.57 5.52 5.55 5.30 5.71 5.23 5.12 5.03 5.12 5.35 4.99 4.92 4.82 5.18 4.71
Payables turnover 13.35 12.31 11.71 12.25 11.37 13.90 12.57 12.61 12.54 13.02 10.34 10.82 11.99 13.30 13.13 12.09 10.15 9.76 10.58 9.11
Working capital turnover 1.64 1.54 1.53 1.54 1.67 1.61 1.57 1.69 1.65 1.75 1.82 1.86 — — 9.12 2.28 2.27 2.37 2.39 12.18

LivaNova PLC's inventory turnover ratio has shown a generally increasing trend over the years, indicating that the company is selling its inventory more efficiently. The ratio increased from 4.88 in March 2020 to 6.31 in December 2024, with some fluctuations in between.

The receivables turnover ratio has also displayed an upward trend, signifying that the company is collecting its receivables more quickly. It rose from 4.71 in March 2020 to 6.25 in December 2024, showing consistency in managing its accounts receivable efficiently.

The payables turnover ratio fluctuated but remained relatively stable over the years, reflecting the company's ability to manage its payables effectively. The ratio ranged from 9.11 in March 2020 to 13.35 in December 2024, with fluctuations in between.

The working capital turnover ratio fluctuated significantly, indicating varying efficiency in generating sales from working capital. The ratio ranged from 2.37 in September 2020 to 12.18 in March 2020, showing inconsistent performance in utilizing working capital for generating revenue.

Overall, LivaNova PLC's activity ratios suggest that the company has been effectively managing its inventory, receivables, and payables turnover, while showing fluctuating performance in utilizing working capital for generating sales.

Average number of days

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
Days of inventory on hand (DOH) days 57.87 61.76 59.31 60.12 58.74 67.56 58.07 54.44 50.67 49.14 56.68 52.41 47.40 56.34 57.63 60.18 56.27 93.00 88.55 74.79
Days of sales outstanding (DSO) days 58.40 60.90 64.61 69.72 71.76 65.52 66.08 65.81 68.82 63.90 69.81 71.22 72.54 71.27 68.21 73.15 74.14 75.67 70.48 77.44
Number of days of payables days 27.34 29.65 31.17 29.81 32.11 26.26 29.03 28.94 29.10 28.03 35.29 33.73 30.45 27.44 27.79 30.18 35.96 37.39 34.51 40.07

The analysis of LivaNova PLC's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- The company's DOH fluctuated over the years, ranging from a high of 93.00 days in September 2020 to a low of 47.40 days in December 2021.
- Overall, there seems to be some variability in managing inventory levels, with the ratio showing a downward trend in recent periods, indicating better inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The DSO metric reflects the number of days it takes for the company to collect its accounts receivable.
- LivaNova PLC's DSO ranged from 70.48 days in June 2020 to 58.40 days in December 2024, showing a decreasing trend over the years.
- A decreasing DSO implies that the company is collecting payments from customers more quickly, which is a positive sign for its liquidity and cash flow.

3. Number of Days of Payables:
- The number of days of payables represents the average number of days a company takes to pay its suppliers.
- LivaNova PLC's payables days ranged from 27.44 days in September 2021 to 35.29 days in June 2022, showing some fluctuations.
- Generally, a lower number of days of payables indicates that the company is paying its suppliers more quickly, which can be both advantageous for maintaining good relationships with suppliers and managing cash flows efficiently.

In conclusion, the analysis of LivaNova PLC's activity ratios suggests that the company has shown improvement in managing its inventory levels and collections from customers, reflecting better efficiency and liquidity management. However, the fluctuations in payables days indicate some variability in the company's payment practices. It is essential for LivaNova PLC to continue monitoring and optimizing these activity ratios to enhance its overall financial performance.

Long-term

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
Fixed asset turnover 7.09 6.98 7.18 7.20 7.10 7.08 6.86 6.63 6.60 7.06 6.46 6.31 6.21 6.10 6.19 5.71 5.54 4.86 5.19 5.79
Total asset turnover 0.48 0.47 0.46 0.45 0.45 0.45 0.44 0.43 0.42 0.44 0.40 0.39 0.42 0.42 0.41 0.38 0.38 0.37 0.39 0.43

The fixed asset turnover ratio for LivaNova PLC has shown a consistent increasing trend over the years, starting at 5.79 in March 2020 and reaching 7.09 in December 2024. This indicates that the company has been generating more revenue for each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also been increasing steadily, from 0.43 in March 2020 to 0.48 in December 2024. This suggests that LivaNova has been efficiently utilizing its total assets to generate sales.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate a positive trend, signifying effective management of assets to drive revenue growth and operational efficiency within the company.