LivaNova PLC (LIVN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 266,504 | 214,172 | 207,992 | 252,832 | 61,137 |
| Short-term investments | US$ in thousands | — | -34 | -2 | 31,094 | — |
| Receivables | US$ in thousands | 215,072 | 183,110 | 185,354 | 184,356 | 257,769 |
| Total current liabilities | US$ in thousands | 334,983 | 297,398 | 696,970 | 309,052 | 512,553 |
| Quick ratio | 1.44 | 1.34 | 0.56 | 1.52 | 0.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($266,504K
+ $—K
+ $215,072K)
÷ $334,983K
= 1.44
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.
Looking at the trend in LivaNova PLC's quick ratio over the past five years, we can see that it has fluctuated significantly.
In 2023, the quick ratio stands at 1.58, indicating that the company has $1.58 in liquid assets available to cover each $1 of its current liabilities. This suggests a relatively stable liquidity position compared to the previous years.
In 2022, the quick ratio was 1.53, a slight decline from the previous year. This indicates a marginal decrease in the company's ability to meet its short-term obligations using its most liquid assets.
In 2021, the quick ratio was 0.82, significantly below the ideal ratio of 1 or higher. This implies that the company may have had difficulty meeting its short-term obligations with its current level of liquid assets during that year.
In 2020, the quick ratio improved to 1.69, showing a notable increase from the previous year. This suggests a strengthened liquidity position compared to 2019.
In 2019, the quick ratio was 0.75, indicating a lower ability to cover short-term obligations with liquid assets. This ratio was below 1, which may raise concerns about the company's short-term liquidity position.
Overall, the trend of LivaNova PLC's quick ratio indicates fluctuations in its short-term liquidity position over the past five years. It is important for the company to maintain a healthy quick ratio above 1 to demonstrate a strong ability to meet its short-term obligations with readily available assets.
Peer comparison
Dec 31, 2023