LivaNova PLC (LIVN)

Debt-to-equity 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-equity ratio 0.42 0.44 0.43 0.01 0.58

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $549,624K ÷ $1,320,260K
= 0.42

The debt-to-equity ratio for LivaNova PLC has shown fluctuation over the past five years. As of December 31, 2020, the ratio stood at 0.58, indicating that the company had more debt relative to equity. However, by the end of 2021, the ratio decreased significantly to 0.01, suggesting a significant reduction in the company's debt burden compared to its equity.

In the following years, the ratio increased slightly to 0.43 as of December 31, 2022, and 0.44 as of December 31, 2023, before dropping slightly to 0.42 by the end of 2024. Overall, the trend indicates that LivaNova PLC has been successful in managing its debt levels relative to equity, with a relatively low debt-to-equity ratio in recent years, which may signal a stronger financial position and lower financial risk for the company.