LivaNova PLC (LIVN)
Working capital 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 |
| Total current assets | US$ in thousands | 988,158 | 886,136 | 679,181 | 708,044 | 549,443 |
| Total current liabilities | US$ in thousands | 334,983 | 297,398 | 696,970 | 309,052 | 512,553 |
| Working capital turnover | 1.67 | 1.65 | — | 2.24 | 28.98 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,093,990K ÷ ($988,158K – $334,983K)
= 1.67
The working capital turnover of LivaNova PLC has fluctuated over the years, indicating the company's efficiency in utilizing its working capital to generate revenue. In 2019, the working capital turnover was exceptionally high at 29.39, suggesting a very efficient use of working capital to generate sales. However, in subsequent years, the working capital turnover decreased significantly.
In 2020, the working capital turnover ratio was 2.28, indicating that the company still efficiently utilized its working capital to generate sales, albeit at a lower rate than in 2019. The ratio then decreased further to 1.74 in 2022, showing a decline in the efficiency of working capital utilization.
However, there was a slight improvement in 2023, with the working capital turnover ratio increasing to 1.77. This improvement suggests that the company was able to better manage its working capital in relation to generating sales compared to the previous year.
Overall, the trend in LivaNova PLC's working capital turnover reflects fluctuations in the company's ability to efficiently utilize its working capital to generate revenue, with room for improvement in optimizing this financial metric.
Peer comparison
Dec 31, 2023