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.
Peer comparison
Dec 31, 2023