LivaNova PLC (LIVN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 88,292 | -81,330 | -75,195 | -124,620 | -349,779 |
| Revenue | US$ in thousands | 1,223,070 | 1,093,990 | 973,933 | 923,733 | 894,804 |
| Pretax margin | 7.22% | -7.43% | -7.72% | -13.49% | -39.09% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $88,292K ÷ $1,223,070K
= 7.22%
The pretax margin of LivaNova PLC has shown a significant improvement over the past few years, reflecting better operational efficiency and cost management.
In December 31, 2020, the pretax margin was at a concerning level of -39.09%, indicating that the company was incurring substantial losses before taxes. However, by December 31, 2021, the pretax margin improved to -13.49%, reflecting some early signs of progress in controlling costs and potentially increasing revenues.
The company continued its positive trajectory in the subsequent years, with the pretax margin further reducing to -7.72% by December 31, 2022, and -7.43% by December 31, 2023. These improvements suggest that LivaNova PLC successfully implemented measures to enhance profitability and streamline its operations.
The most notable achievement was seen by December 31, 2024, where the pretax margin turned positive at 7.22%. This indicates that LivaNova PLC not only managed to turn its losses into profits but also achieved a decent level of profitability before taxes.
Overall, the trend in LivaNova PLC's pretax margin demonstrates a commendable turnaround in financial performance, showcasing the company's efforts to enhance efficiency, reduce costs, and drive towards sustainable profitability.
Peer comparison
Dec 31, 2024