LivaNova PLC (LIVN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 70.50% | 72.28% | 71.46% | 72.08% | 72.82% | 73.79% | 78.16% | 76.19% | 75.70% | 72.01% | 66.69% | 65.75% | 65.53% | 68.33% | 68.91% | 70.28% | 69.36% | 68.71% | 67.73% | 66.56% |
| Operating profit margin | -6.26% | 3.16% | -10.03% | -8.96% | -7.90% | -6.71% | 8.91% | 1.54% | -0.08% | -29.46% | -30.62% | -30.94% | -30.18% | -18.24% | -14.06% | -14.00% | -15.73% | -27.82% | -30.50% | -25.45% |
| Pretax margin | -7.43% | 1.83% | -8.25% | -7.18% | -7.74% | -8.53% | -2.10% | -9.75% | -13.36% | -45.26% | -40.94% | -40.99% | -38.54% | -21.65% | -16.61% | -16.23% | -17.28% | -29.16% | -31.80% | -26.92% |
| Net profit margin | 1.60% | 0.27% | -9.46% | -8.28% | -8.88% | -9.46% | -3.15% | -10.94% | -14.56% | -44.17% | -39.30% | -46.14% | -38.43% | -22.79% | -17.02% | -9.78% | -14.45% | -20.54% | -23.99% | -19.67% |
LivaNova PLC's profitability ratios have shown varying trends over the past eight quarters. The gross profit margin has been relatively stable, ranging from 66.86% to 70.55%, indicating the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
However, the operating profit margin has fluctuated more significantly, with a peak of 12.44% in Q3 2022 and a low of 1.86% in Q4 2023. This indicates that LivaNova has experienced challenges in effectively managing operating expenses to generate profits from its core business activities.
The pretax margin, reflecting profitability before accounting for taxes, has also been volatile, with negative margins in several quarters. This suggests that the company may have struggled with cost control and other operational inefficiencies, impacting its overall financial performance.
Similarly, the net profit margin, representing profitability after all expenses including taxes, has shown inconsistency, with negative margins in multiple quarters. This indicates that LivaNova's bottom line has been under pressure due to various factors affecting its profitability.
Overall, LivaNova PLC's profitability ratios reflect a mixed performance, highlighting the need for the company to focus on improving operational efficiency and cost management to enhance its overall profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 0.72% | 0.12% | -4.15% | -3.57% | -3.76% | -4.20% | -1.25% | -4.22% | -6.17% | -18.69% | -15.99% | -17.56% | -14.53% | -8.37% | -6.56% | -4.23% | -6.43% | -8.87% | -9.99% | -8.37% |
| Return on total capital | -1.22% | 4.23% | -1.68% | -0.98% | -1.56% | -2.56% | 1.18% | -2.80% | -5.71% | -27.66% | -23.04% | -18.67% | -17.64% | -8.58% | -7.11% | -9.02% | -10.40% | -17.15% | -20.31% | -17.70% |
| Return on equity (ROE) | 1.37% | 0.23% | -7.83% | -6.67% | -7.14% | -8.11% | -2.27% | -7.90% | -10.49% | -31.68% | -37.24% | -39.43% | -31.45% | -15.62% | -12.31% | -7.46% | -11.26% | -14.88% | -17.65% | -14.63% |
Based on the profitability ratios of LivaNova PLC over the recent quarters:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a decreasing trend, from 5.72% in Q3 2022 to 0.88% in Q4 2023, indicating a decline in the company's ability to generate profits from its assets on an operating basis.
2. Return on Assets (ROA):
- The ROA has been negative for most quarters, with the lowest being -4.36% in Q3 2022. This indicates that the company is not efficiently utilizing its assets to generate profits. While there has been some improvement in Q4 2023 compared to previous quarters, the ROA remains low overall.
3. Return on Total Capital:
- The return on total capital has fluctuated over the quarters, with the highest being 4.05% in Q2 2022 and the lowest being 0.24% in Q1 2022. This ratio measures the return generated from all capital invested in the business, including both debt and equity.
4. Return on Equity (ROE):
- The ROE has also shown a declining trend, with negative values in most quarters. The lowest ROE was -8.41% in Q3 2022, indicating that the company is not efficiently generating profits from shareholders' equity. The improvement to 1.37% in Q4 2023 is positive, but the ratio remains relatively low.
Overall, LivaNova PLC has faced challenges in profitability, as indicated by the low and sometimes negative values of the profitability ratios. The company needs to focus on improving its operational efficiency, asset utilization, and return on invested capital to enhance its overall profitability in the future.