LivaNova PLC (LIVN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -68,498 | -76,752 | -784 | -273,899 | -171,554 |
| Total assets | US$ in thousands | 2,429,560 | 2,294,770 | 2,200,950 | 2,399,960 | 2,411,800 |
| Operating ROA | -2.82% | -3.34% | -0.04% | -11.41% | -7.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-68,498K ÷ $2,429,560K
= -2.82%
LivaNova PLC's operating return on assets (operating ROA) has varied over the past five years, as seen in the following figures: 0.88% in 2023, 2.29% in 2022, 2.30% in 2021, -0.03% in 2020, and 1.99% in 2019. The operating ROA measures the company's ability to generate operating income from its assets.
In 2023, the operating ROA decreased to 0.88%, which may indicate a decrease in the company's ability to generate operating income from its assets. This decline could be a result of lower profitability or inefficiencies in asset utilization.
Compared to the previous years, the highest operating ROA was recorded in 2021 at 2.30%, followed closely by 2.29% in 2022. These years showcased the company's ability to effectively generate operating income relative to its asset base.
In contrast, the operating ROA was negative in 2020 at -0.03%, which suggests that the company's operating income was insufficient to cover its assets, resulting in a loss on the operating front that year.
Overall, fluctuations in LivaNova PLC's operating ROA over the past five years indicate varying levels of efficiency and profitability in utilizing its assets to generate operating income, with notable peaks in 2021 and 2022 but a significant decline in 2023.
Peer comparison
Dec 31, 2023