LivaNova PLC (LIVN)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,223,070 | 1,093,990 | 973,933 | 923,733 | 894,804 |
| Receivables | US$ in thousands | 193,158 | 215,072 | 183,110 | 185,354 | 184,356 |
| Receivables turnover | 6.33 | 5.09 | 5.32 | 4.98 | 4.85 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,223,070K ÷ $193,158K
= 6.33
The receivables turnover ratio for LivaNova PLC has shown a generally increasing trend over the past five years. It was 4.85 in December 31, 2020, and improved to 6.33 by December 31, 2024. This indicates that the company is managing its accounts receivable more efficiently over time, as it is able to collect payments from customers at a faster rate.
A higher receivables turnover ratio suggests that the company is converting its credit sales into cash more quickly, which is a positive sign of liquidity and effective credit management. However, it is essential to consider industry norms and compare this ratio with peers to get a better understanding of the company's performance in managing its receivables effectively.
Overall, the increasing trend in LivaNova's receivables turnover ratio indicates improving efficiency in collecting payments from customers, which is a positive financial indicator for the company.
Peer comparison
Dec 31, 2024