LivaNova PLC (LIVN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 428,858 | 266,504 | 214,172 | 207,992 | 252,832 |
| Short-term investments | US$ in thousands | — | — | -34 | -2 | 31,094 |
| Receivables | US$ in thousands | 193,158 | 215,072 | 183,110 | 185,354 | 184,356 |
| Total current liabilities | US$ in thousands | 392,125 | 334,983 | 297,398 | 696,970 | 309,052 |
| Quick ratio | 1.59 | 1.44 | 1.34 | 0.56 | 1.52 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($428,858K
+ $—K
+ $193,158K)
÷ $392,125K
= 1.59
The quick ratio of LivaNova PLC has shown fluctuations over the past five years. In December 2020, the quick ratio was 1.52, indicating that the company had $1.52 of easily liquid assets available to cover each dollar of current liabilities. However, by December 2021, the quick ratio had decreased significantly to 0.56, which may suggest potential liquidity concerns as the company had only $0.56 in quick assets for every dollar of current liabilities.
Subsequently, the quick ratio improved in the following years, reaching 1.34 in December 2022, 1.44 in December 2023, and 1.59 in December 2024. These increases indicate a strengthening liquidity position, with the company having more than enough quick assets to cover its short-term obligations in the latter years.
Overall, the trend in LivaNova PLC's quick ratio reflects both periods of potential liquidity challenges and improvements in liquidity management over the five-year period. It is essential for stakeholders to monitor the quick ratio closely to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024