LivaNova PLC (LIVN)
Working capital 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 |
| Total current assets | US$ in thousands | 1,127,190 | 988,158 | 886,136 | 679,181 | 708,044 |
| Total current liabilities | US$ in thousands | 392,125 | 334,983 | 297,398 | 696,970 | 309,052 |
| Working capital turnover | 1.66 | 1.67 | 1.65 | — | 2.24 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,223,070K ÷ ($1,127,190K – $392,125K)
= 1.66
Based on the provided data, the working capital turnover for LivaNova PLC has shown some fluctuation over the years. In 2020, the working capital turnover stood at 2.24, indicating that the company generated 2.24 times in revenue from its working capital during that period. However, in 2021, the data is not available ("—"), possibly due to certain reporting issues or changes in the company's financial disclosure.
Subsequently, in 2022, the working capital turnover decreased to 1.65, suggesting a decline in the efficiency of using working capital to generate revenue. This implies that the company may have faced challenges in managing its working capital effectively compared to the previous year. The ratios for 2023 and 2024 remained relatively stable at 1.67 and 1.66, respectively, indicating a consistent but not significant improvement in utilizing working capital efficiently.
Overall, it is essential for LivaNova PLC to monitor and manage its working capital turnover effectively to ensure optimal utilization of resources and to support sustainable revenue generation in the future.
Peer comparison
Dec 31, 2024