LivaNova PLC (LIVN)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,093,987 | 1,057,777 | 1,026,749 | 989,010 | 971,142 | 983,022 | 925,125 | 933,289 | 932,621 | 932,112 | 974,900 | 901,723 | 907,604 | 925,639 | 964,065 | 1,062,089 | 1,073,680 | 1,083,073 | 1,091,319 | 1,105,702 |
| Total current assets | US$ in thousands | 988,158 | 953,867 | 941,835 | 903,017 | 886,136 | 851,222 | 771,927 | 809,623 | 679,181 | 646,355 | 809,102 | 690,630 | 708,044 | 673,136 | 672,439 | 616,922 | 549,443 | 546,846 | 568,444 | 540,602 |
| Total current liabilities | US$ in thousands | 334,983 | 295,396 | 288,164 | 316,129 | 297,398 | 288,016 | 263,893 | 307,914 | 696,970 | 658,465 | 702,248 | 295,356 | 309,052 | 281,759 | 268,364 | 529,724 | 512,553 | 469,191 | 595,909 | 622,310 |
| Working capital turnover | 1.67 | 1.61 | 1.57 | 1.69 | 1.65 | 1.75 | 1.82 | 1.86 | — | — | 9.12 | 2.28 | 2.27 | 2.37 | 2.39 | 12.18 | 29.10 | 13.95 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,093,987K ÷ ($988,158K – $334,983K)
= 1.67
The working capital turnover of LivaNova PLC has shown some fluctuations over the past eight quarters, ranging from a low of 1.66 in Q2 2023 to a high of 2.05 in Q1 2022. Generally, a higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue.
In the most recent quarter, Q4 2023, the working capital turnover improved to 1.77 from the previous quarter's 1.70, suggesting a slightly more efficient management of working capital to support sales activities. However, it is important to monitor this ratio over time to ensure that the company continues to effectively manage its working capital to drive revenue growth.
It is also worth noting that while the working capital turnover has shown fluctuations, it has generally remained above 1.5, indicating that LivaNova PLC is efficiently using its working capital to support its operations and generate revenue.
Peer comparison
Dec 31, 2023