LivaNova PLC (LIVN)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 428,858 | 346,366 | 329,237 | 309,191 | 266,504 | 233,941 | 222,935 | 214,340 | 214,172 | 231,114 | 109,022 | 128,737 | 207,992 | 181,846 | 329,386 | 252,539 | 252,832 | 227,811 | 232,549 | 125,823 |
| Short-term investments | US$ in thousands | 42 | 3 | — | — | — | -2 | — | 900 | -34 | — | -35 | — | -8 | 16,000 | 15,000 | 36,772 | -6 | 30,358 | 30,245 | 40 |
| Total current liabilities | US$ in thousands | 392,125 | 324,402 | 302,986 | 327,771 | 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 |
| Cash ratio | 1.09 | 1.07 | 1.09 | 0.94 | 0.80 | 0.79 | 0.77 | 0.68 | 0.72 | 0.80 | 0.41 | 0.42 | 0.30 | 0.30 | 0.49 | 0.98 | 0.82 | 0.92 | 0.98 | 0.24 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($428,858K
+ $42K)
÷ $392,125K
= 1.09
The cash ratio of LivaNova PLC has fluctuated over the years, starting from 0.24 on March 31, 2020, and peaking at 1.09 on June 30, 2024. Generally, the cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger liquidity position, as the company has more cash on hand to meet its immediate obligations.
LivaNova PLC experienced an upward trend in the cash ratio from 2020 to 2024, with some fluctuations in between. The ratio reached its lowest point of 0.24 on March 31, 2020, and showed significant improvement over the years, reaching its peak of 1.09 on June 30, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents improved significantly during this period.
It is important to note that while a high cash ratio indicates a strong liquidity position, having too much cash on hand may also imply that the company is not efficiently utilizing its resources to generate returns. Therefore, it is essential for LivaNova PLC to strike a balance between maintaining a healthy cash ratio and investing excess cash to maximize shareholder value.
Peer comparison
Dec 31, 2024