LivaNova PLC (LIVN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -22,477 | -26,945 | -74,469 | -308,942 | -172,922 |
| Long-term debt | US$ in thousands | 568,543 | 518,067 | 9,849 | 642,298 | 260,330 |
| Total stockholders’ equity | US$ in thousands | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 | 1,377,960 |
| Return on total capital | -1.22% | -1.56% | -5.71% | -17.64% | -10.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-22,477K ÷ ($568,543K + $1,277,630K)
= -1.22%
The return on total capital for LivaNova PLC has shown varying performance over the past five years. In 2023, the return on total capital was at 1.15%, a decrease from the previous year's 3.01%. This indicates a decline in the company's ability to generate returns from its total capital investment.
Looking back further, in 2021 and 2020, the return on total capital was negative, signifying that the company was unable to generate positive returns on its total capital investments. However, in 2019, the return on total capital was relatively strong at 2.79%.
Overall, the trend in LivaNova PLC's return on total capital demonstrates inconsistency and suggests the company has experienced challenges in efficiently utilizing its total capital to generate returns for its stakeholders. Further analysis of the company's operations, financial structure, and investment decisions may be warranted to address the fluctuations in its return on total capital.
Peer comparison
Dec 31, 2023