LivaNova PLC (LIVN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 568,543 | 518,067 | 9,849 | 642,298 | 260,330 |
| Total assets | US$ in thousands | 2,429,560 | 2,294,770 | 2,200,950 | 2,399,960 | 2,411,800 |
| Debt-to-assets ratio | 0.23 | 0.23 | 0.00 | 0.27 | 0.11 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $568,543K ÷ $2,429,560K
= 0.23
The debt-to-assets ratio of LivaNova PLC has exhibited some fluctuations over the past five years. In 2023 and 2022, the ratio remained stable at 0.24, indicating that the company finances approximately 24% of its assets through debt. This suggests a moderate level of leverage.
In 2021, the ratio decreased to 0.11, signaling a significant reduction in the proportion of debt relative to assets, which could indicate stronger financial stability and a lower risk of insolvency.
However, in 2020, the ratio increased to 0.27, indicating a higher reliance on debt to finance assets compared to the previous year. This heightened leverage may pose a greater risk to the company in terms of debt repayment obligations and financial flexibility.
In 2019, the ratio was 0.14, demonstrating a moderate level of leverage similar to the recent years. Overall, the trend in LivaNova PLC's debt-to-assets ratio suggests fluctuations in the company's capital structure and financial risk profile over the five-year period.
Peer comparison
Dec 31, 2023