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.
Peer comparison
Dec 31, 2024