LivaNova PLC (LIVN)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-capital ratio		0.29	0.31	0.30	0.01	0.37

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $549,624K ÷ ($549,624K + $1,320,260K)
= 0.29

The debt-to-capital ratio of LivaNova PLC has shown fluctuations over the past five years, ranging from 0.01 to 0.37. Generally, a lower debt-to-capital ratio indicates a company has less debt relative to its total capital, suggesting lower financial risk.

In December 31, 2021, the ratio significantly decreased to 0.01, which may indicate a reduction in debt or an increase in equity capital. This could be a positive sign for the company's financial health and stability.

However, from 2022 onwards, the ratio has stabilized between 0.29 and 0.31, indicating a moderate level of debt compared to the total capital. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's leverage and financial risk management strategies.