LivaNova PLC (LIVN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.20% | 70.50% | 72.62% | 76.43% | 66.47% |
| Operating profit margin | 10.55% | -6.26% | -7.88% | -0.08% | -30.61% |
| Pretax margin | 7.22% | -7.43% | -7.72% | -13.49% | -39.09% |
| Net profit margin | 5.17% | 1.60% | -8.86% | -14.70% | -38.98% |
LivaNova PLC's gross profit margin has shown some fluctuations over the past five years, starting at 66.47% in December 2020 and gradually increasing to 76.43% by December 2021. However, it slightly decreased to 72.62% in December 2022, and then continued to moderate to 70.50% by December 2023 before rebounding to 71.20% by December 2024.
On the other hand, the operating profit margin, which reflects the company's efficiency in managing its operating expenses, showed significant improvements. It started at a low of -30.61% in December 2020, gradually moving towards positivity and reaching 10.55% in December 2024.
The pretax margin, indicating the company's profitability before taxes, also displayed a decreasing trend over the years. It started at -39.09% in December 2020, improved over the next years, and finally stood at 7.22% by December 2024.
Lastly, the net profit margin, demonstrating the company's profitability after all expenses, showed a roller-coaster ride. It began at a low of -38.98% in December 2020, improved slightly in the following years, and showcased a more positive outcome of 5.17% by December 2024.
In conclusion, LivaNova PLC's profitability ratios have seen varying trends over the years, with improvements in operating profit margin and net profit margin, while the pretax margin exhibited slight fluctuations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.15% | -2.82% | -3.34% | -0.04% | -11.41% |
| Return on assets (ROA) | 2.52% | 0.72% | -3.76% | -6.17% | -14.53% |
| Return on total capital | 6.90% | -1.22% | -1.56% | -5.71% | -17.64% |
| Return on equity (ROE) | 4.79% | 1.37% | -7.14% | -10.49% | -31.45% |
The profitability ratios of LivaNova PLC show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) was negative in 2020 at -11.41%, reflecting a loss-making operation. However, there was a slight improvement in 2021 with a negative Operating ROA of -0.04%. In the following years, the Operating ROA remained negative but improved significantly in 2024 to 5.15%, indicating better utilization of assets to generate operating profits.
2. Return on assets (ROA) was also negative in 2020 and 2021, but improved gradually to 2.52% in 2024. This ratio indicates how effectively the company is generating profits from its total assets. The positive trend in ROA suggests an improvement in overall asset efficiency.
3. Return on total capital was negative in 2020 and 2021, showing a loss on the capital invested in the business. However, there was a notable improvement in 2024 with a return of 6.90%, indicating better profitability generated from total capital employed.
4. Return on equity (ROE) was highly negative in 2020 at -31.45%, which means that the company was not effectively generating returns for its shareholders. The ROE improved gradually over the next few years, reaching 4.79% in 2024. This improvement indicates a better return for shareholders on their equity investment in the company.
Overall, the profitability ratios of LivaNova PLC show a significant improvement in profitability and efficiency in recent years, reflecting a positive trend in utilizing assets and capital to generate returns for both the company and its shareholders.