LivaNova PLC (LIVN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,093,990	973,933	923,733	894,804	1,069,080
Receivables	US$ in thousands	215,072	183,110	185,354	184,356	257,769
Receivables turnover		5.09	5.32	4.98	4.85	4.15

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,093,990K ÷ $215,072K
= 5.09

The receivables turnover ratio measures the efficiency with which a company is able to collect its accounts receivable during a specific period. A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly.

Looking at the trend of LivaNova PLC's receivables turnover from 2019 to 2023, we observe a consistent improvement in the ratio. The receivables turnover ratio has increased from 4.21 in 2019 to 5.36 in 2023. This indicates that the company has been able to collect its outstanding receivables more efficiently over the years.

The increase in receivables turnover may suggest that LivaNova PLC has implemented better credit policies, improved its collections process, or has more stringent payment terms with its customers. A higher receivables turnover ratio also indicates that the company is generating sales and collecting payments on those sales at a faster pace, which can positively impact its cash flow and liquidity position.

Overall, the improving trend in LivaNova PLC's receivables turnover ratio reflects positively on the company's ability to manage its accounts receivable effectively and efficiently. It signals that the company is effectively converting its credit sales into cash, which is essential for its financial health and operational performance.