LivaNova PLC (LIVN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	266,504	214,172	207,992	252,832	61,137
Short-term investments	US$ in thousands	—	-34	-2	31,094	—
Total current liabilities	US$ in thousands	334,983	297,398	696,970	309,052	512,553
Cash ratio		0.80	0.72	0.30	0.92	0.12

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($266,504K + $—K) ÷ $334,983K
= 0.80

The cash ratio of LivaNova PLC has fluctuated over the past five years, ranging from 0.25 in 2019 to 1.09 in 2020. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.

In 2021, the cash ratio dropped to 0.56, suggesting a potential decrease in the company's liquidity position compared to the previous year. However, the ratio improved in 2022 to 0.92, indicating a better ability to cover short-term liabilities with available cash.

By the end of 2023, the cash ratio further increased to 0.94, showing a slightly improved liquidity position compared to the previous year. Overall, LivaNova PLC's cash ratio has displayed some variability in recent years, with fluctuations possibly reflecting changes in the company's cash management and liquidity position. It would be advisable for stakeholders to monitor this ratio closely to assess the company's liquidity risk going forward.