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.
Peer comparison
Dec 31, 2023