LivaNova PLC (LIVN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 988,158 | 886,136 | 679,181 | 708,044 | 549,443 |
| Total current liabilities | US$ in thousands | 334,983 | 297,398 | 696,970 | 309,052 | 512,553 |
| Current ratio | 2.95 | 2.98 | 0.97 | 2.29 | 1.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $988,158K ÷ $334,983K
= 2.95
The current ratio of LivaNova PLC has displayed fluctuations over the past five years.
In 2019, the current ratio was relatively low at 1.07, indicating that the company may have had difficulties meeting its short-term obligations with its current assets alone.
By the end of 2020, the current ratio improved significantly to 2.33, suggesting that LivaNova enhanced its liquidity position and became more capable of covering its short-term liabilities.
In 2021, however, the current ratio dropped to 0.97, signaling a potential liquidity issue for the company and indicating that its current assets may not be sufficient to cover its current liabilities.
The trend changed again in 2022, with the current ratio increasing to 2.98, indicating a significant improvement in LivaNova's ability to meet short-term obligations.
By the end of 2023, the current ratio stands at 2.95, demonstrating a relatively stable liquidity position compared to the previous year.
Overall, it is evident that LivaNova PLC has shown fluctuations in its liquidity position over the last five years, with notable improvements in certain years and some challenges in others. Monitoring this ratio over time can provide valuable insights into the company's financial health and management of its short-term obligations.
Peer comparison
Dec 31, 2023