LivaNova PLC (LIVN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 63,234 | 17,546 | -86,246 | -135,818 | -348,819 |
| Total stockholders’ equity | US$ in thousands | 1,320,260 | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 |
| ROE | 4.79% | 1.37% | -7.14% | -10.49% | -31.45% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $63,234K ÷ $1,320,260K
= 4.79%
Based on the provided data, the return on equity (ROE) of LivaNova PLC has shown a fluctuating trend over the years. The ROE was negative at -31.45% as of December 31, 2020, indicating that the company generated a net loss in relation to its equity.
However, there has been an improvement in subsequent years, with the ROE improving to -10.49% as of December 31, 2021, and further increasing to -7.14% as of December 31, 2022. While still negative, these improvements suggest the company is moving towards better profitability relative to shareholders' equity.
The trend continues to show progress, with the ROE turning positive at 1.37% as of December 31, 2023, and further improving to 4.79% as of December 31, 2024. This positive ROE indicates that the company is generating a profit relative to the equity invested by shareholders, showcasing improved efficiency in utilizing shareholder funds to generate returns.
Overall, the trend in LivaNova PLC's ROE shows a journey from negative values towards positive territory, reflecting potential improvements in profitability and operational efficiency over the years. However, investors and stakeholders should continue to monitor this ratio to ensure sustained positive performance in the future.
Peer comparison
Dec 31, 2024