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.


Peer comparison

Dec 31, 2023