LivaNova PLC (LIVN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 17,546 | -86,246 | -135,818 | -348,819 | -157,639 |
| Total stockholders’ equity | US$ in thousands | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 | 1,377,960 |
| ROE | 1.37% | -7.14% | -10.49% | -31.45% | -11.44% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $17,546K ÷ $1,277,630K
= 1.37%
LivaNova PLC's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE improved significantly to 1.37% from negative figures in the previous years. This indicates that the company generated a modest return for its shareholders in 2023.
In 2022 and 2021, the ROE was negative at -7.14% and -10.49% respectively, suggesting that the company was not efficient in generating returns from shareholder equity during those years.
The most significant decline in ROE was observed in 2020 when it dropped to -30.84%. This indicates a substantial decrease in the company's ability to generate profit from shareholders' equity in that year.
In 2019, the ROE was also negative at -11.21%, indicating another year of poor performance in terms of generating returns for shareholders.
Overall, the trend in ROE for LivaNova PLC shows inconsistency and variability over the past five years, with improvements in 2023 compared to the negative or low returns in the earlier years. It is essential for the company to focus on improving its profitability and operational efficiency to enhance shareholder value in the future.
Peer comparison
Dec 31, 2023