LivaNova PLC (LIVN)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,127,190	988,158	886,136	679,181	708,044
Total current liabilities	US$ in thousands	392,125	334,983	297,398	696,970	309,052
Current ratio		2.87	2.95	2.98	0.97	2.29

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,127,190K ÷ $392,125K
= 2.87

Based on the data provided, the current ratio of LivaNova PLC has fluctuated over the past five years. The current ratio measures a company's ability to meet its short-term obligations with its current assets.

In December 31, 2020, the current ratio was 2.29, indicating that the company had more than twice the current assets to cover its current liabilities, which is generally seen as a positive sign of liquidity. However, by December 31, 2021, the current ratio decreased to 0.97, which may suggest potential liquidity concerns as the current assets were almost equal to the current liabilities.

The trend reversed in the following years, as the current ratio improved significantly to 2.98, 2.95, and 2.87 in December 31, 2022, 2023, and 2024 respectively. These higher values indicate that the company had a healthier liquidity position, with more current assets available to cover current liabilities.

Overall, the fluctuating trend in LivaNova PLC's current ratio over the years highlights the importance of monitoring liquidity levels and managing short-term obligations effectively to ensure the company's financial health and stability.