LivaNova PLC (LIVN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.74 | 67.56 | 58.07 | 54.44 | 50.67 | 49.14 | 56.68 | 52.41 | 47.40 | 56.34 | 57.63 | 60.18 | 56.27 | 93.00 | 88.55 | 74.79 | 71.02 | 64.90 | 75.68 | 92.03 |
| Days of sales outstanding (DSO) | days | 71.76 | 65.52 | 66.08 | 65.81 | 68.82 | 63.90 | 69.81 | 71.22 | 72.54 | 71.27 | 68.21 | 73.15 | 74.14 | 75.67 | 70.48 | 77.44 | 87.63 | 81.95 | 85.66 | 81.56 |
| Number of days of payables | days | 32.11 | 26.26 | 29.03 | 28.94 | 29.10 | 28.03 | 35.29 | 33.73 | 30.45 | 27.44 | 27.79 | 30.18 | 35.96 | 37.39 | 34.51 | 40.07 | 37.16 | 29.22 | 39.72 | 45.77 |
| Cash conversion cycle | days | 98.39 | 106.82 | 95.12 | 91.31 | 90.39 | 85.01 | 91.21 | 89.90 | 89.49 | 100.18 | 98.05 | 103.14 | 94.45 | 131.28 | 124.52 | 112.16 | 121.49 | 117.64 | 121.63 | 127.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.74 + 71.76 – 32.11
= 98.39
The cash conversion cycle for LivaNova PLC has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 132.06 days, which decreased compared to the previous quarter. This indicates that LivaNova was able to convert its investments in inventory and accounts receivable into cash more efficiently during that period.
However, looking back at the trend over the past two years, the cash conversion cycle has generally been increasing, with some fluctuations between quarters. This suggests that LivaNova may be experiencing challenges in managing its working capital efficiently.
In Q2 2022, the cash conversion cycle reached its peak at 143.88 days, indicating that the company was taking longer to convert its investments in inventory and accounts receivable into cash during that period. Subsequently, the cycle decreased in the following quarters but has been generally on an upward trend since then.
Overall, LivaNova's cash conversion cycle analysis suggests that the company may need to focus on improving its working capital management practices to enhance its cash flow efficiency and overall financial performance.
Peer comparison
Dec 31, 2023