LivaNova PLC (LIVN)

Current 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
Total current assets	US$ in thousands	1,127,190	1,093,110	1,046,690	1,040,020	988,158	953,867	941,835	903,017	886,136	851,222	771,927	809,623	679,181	646,355	809,102	690,630	708,044	673,136	672,439	616,922
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
Current ratio		2.87	3.37	3.45	3.17	2.95	3.23	3.27	2.86	2.98	2.96	2.93	2.63	0.97	0.98	1.15	2.34	2.29	2.39	2.51	1.16

December 31, 2024 calculation

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

The current ratio of LivaNova PLC has exhibited fluctuations over the analyzed periods. Specifically, the current ratio started at a relatively low level of 1.16 as of March 31, 2020, indicating potential liquidity concerns. However, there was a notable improvement in the subsequent quarters, with the ratio increasing significantly to 2.51 by June 30, 2020. This improvement continued into the following periods, reaching its peak at 3.45 on June 30, 2024.

Despite the overall positive trend observed in the current ratio for most periods, there were instances of declines, such as the notable drop from 2.93 on June 30, 2022 to 0.98 on September 30, 2021. This sudden decrease may raise concerns about the company's short-term liquidity position during that period.

It is worth mentioning that the current ratio provides insight into a company's ability to cover its short-term obligations with its current assets. A ratio below 1 could indicate financial distress, while a ratio significantly above 1 may suggest that the company is not efficiently utilizing its current assets.

Overall, the current ratio of LivaNova PLC has shown volatility but has generally trended upwards, reflecting improvements in the company's short-term liquidity position over the analyzed periods. However, stakeholders should closely monitor any significant fluctuations to assess the company's ongoing liquidity management.