LivaNova PLC (LIVN)

Debt-to-equity 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-equity ratio		0.44	0.43	0.01	0.58	0.19

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $568,543K ÷ $1,277,630K
= 0.44

The debt-to-equity ratio of LivaNova PLC has shown fluctuations over the past five years. In 2023, the ratio increased slightly to 0.46 from 0.45 in 2022. This indicates that the company's level of debt relative to equity has inched up.

Comparing these recent ratios to earlier years, we see a notable increase from 0.19 in 2021 to 0.59 in 2020, followed by a decrease to 0.24 in 2019. This fluctuation suggests varying levels of leverage employed by the company over this period.

The trend in the debt-to-equity ratio indicates changes in the company's capital structure and financial risk. A rising ratio can signal increased reliance on debt financing, which may pose higher risks, while a declining ratio may indicate a more conservative financial strategy.

Overall, a deeper analysis of the factors driving these changes in the debt-to-equity ratio would be necessary to fully assess LivaNova PLC's financial position and its ability to manage debt effectively.