LivaNova PLC (LIVN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 129,051 | -22,477 | -26,945 | -74,469 | -308,942 |
| Long-term debt | US$ in thousands | 549,624 | 568,543 | 518,067 | 9,849 | 642,298 |
| Total stockholders’ equity | US$ in thousands | 1,320,260 | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 |
| Return on total capital | 6.90% | -1.22% | -1.56% | -5.71% | -17.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $129,051K ÷ ($549,624K + $1,320,260K)
= 6.90%
The return on total capital for LivaNova PLC has shown a fluctuating trend over the past five years. Starting from a negative value of -17.64% in December 2020, the return improved to -5.71% in December 2021, then further increased to -1.56% in December 2022. Subsequently, there was a slight decline to -1.22% in December 2023. However, there was a notable positive turnaround in December 2024, with the return on total capital reaching 6.90%. This positive shift indicates an improvement in the company's ability to generate profits relative to its total capital employed. It is essential for LivaNova PLC to sustain this positive momentum to enhance its overall financial performance and create value for its stakeholders.
Peer comparison
Dec 31, 2024