LivaNova PLC (LIVN)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -68,498 | 33,452 | -102,979 | -88,599 | -76,752 | -65,958 | 82,437 | 14,419 | -784 | -274,561 | -298,535 | -279,016 | -273,899 | -168,852 | -135,539 | -148,672 | -168,870 | -301,346 | -332,864 | -281,381 |
| Total assets | US$ in thousands | 2,429,560 | 2,329,420 | 2,341,560 | 2,294,890 | 2,294,770 | 2,212,880 | 2,336,240 | 2,416,880 | 2,200,950 | 2,203,410 | 2,396,520 | 2,369,170 | 2,399,960 | 2,521,750 | 2,502,660 | 2,454,440 | 2,411,800 | 2,509,940 | 2,621,660 | 2,599,540 |
| Operating ROA | -2.82% | 1.44% | -4.40% | -3.86% | -3.34% | -2.98% | 3.53% | 0.60% | -0.04% | -12.46% | -12.46% | -11.78% | -11.41% | -6.70% | -5.42% | -6.06% | -7.00% | -12.01% | -12.70% | -10.82% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-68,498K ÷ $2,429,560K
= -2.82%
To analyze LivaNova PLC's operating return on assets (operating ROA) based on the provided data, we observe a downward trend in the operating ROA over the eight quarters. Starting from Q1 2022 at 2.29%, the operating ROA decreased to 0.88% in Q4 2023. This decline indicates that the company's ability to generate operating profits from its assets has weakened over the period.
The highest operating ROA was recorded in Q3 2022 at 5.72%, followed by Q2 2022 at 5.30%. These quarters reflected strong profitability relative to asset utilization. However, the subsequent quarters showed a consistent decline in operating ROA.
The average operating ROA over the eight quarters is approximately 2.64%, with significant variations across the periods. The decreasing trend in operating ROA may signal potential inefficiencies or challenges in operational performance and asset management for LivaNova PLC. Further investigation into the underlying factors impacting the company's profitability and asset utilization is warranted to address the declining trend and improve overall financial performance.
Peer comparison
Dec 31, 2023