LivaNova PLC (LIVN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 428,858 | 266,504 | 214,172 | 207,992 | 252,832 |
| Short-term investments | US$ in thousands | — | — | -34 | -2 | 31,094 |
| Total current liabilities | US$ in thousands | 392,125 | 334,983 | 297,398 | 696,970 | 309,052 |
| Cash ratio | 1.09 | 0.80 | 0.72 | 0.30 | 0.92 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($428,858K
+ $—K)
÷ $392,125K
= 1.09
The cash ratio for LivaNova PLC has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.92, indicating that the company had $0.92 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio decreased significantly to 0.30, suggesting a lower level of liquidity to cover short-term obligations.
Subsequently, the cash ratio improved to 0.72 by December 31, 2022, and further increased to 0.80 by December 31, 2023, indicating a recovery in the company's ability to meet its short-term liabilities with cash on hand. By December 31, 2024, the cash ratio reached its highest point at 1.09, demonstrating a strong liquidity position with more than enough cash to cover current obligations.
Overall, the trend in LivaNova PLC's cash ratio reflects fluctuations in its liquidity position over the years, with improvements in recent periods suggesting a more stable financial footing to meet short-term financial commitments.
Peer comparison
Dec 31, 2024