LivaNova PLC (LIVN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 | 1,377,960 |
| Debt-to-capital ratio | 0.31 | 0.30 | 0.01 | 0.37 | 0.16 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $568,543K ÷ ($568,543K + $1,277,630K)
= 0.31
The debt-to-capital ratio of LivaNova PLC has fluctuated over the past five years, ranging from 0.16 to 0.37. In 2023 and 2022, the ratio remained stable at 0.31, indicating that approximately 31% of the company's capital was financed through debt during those years.
The significant increase in the ratio in 2020 to 0.37 suggests that the company relied more heavily on debt financing that year, with debt accounting for 37% of the capital structure. This may have been a strategic decision to fund expansion or invest in new projects.
In contrast, the ratio dropped to 0.20 in 2019, signaling a decrease in the proportion of debt relative to total capital, potentially reflecting a repayment of debt or a shift towards equity financing.
Overall, the debt-to-capital ratio of LivaNova PLC indicates fluctuations in the company's leverage over the years, highlighting the importance of carefully managing the capital structure to maintain financial stability and optimize the cost of capital.
Peer comparison
Dec 31, 2023