LivaNova PLC (LIVN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,506,390 | 2,429,560 | 2,294,770 | 2,200,950 | 2,399,960 |
| Total stockholders’ equity | US$ in thousands | 1,320,260 | 1,277,630 | 1,207,620 | 1,294,640 | 1,109,260 |
| Financial leverage ratio | 1.90 | 1.90 | 1.90 | 1.70 | 2.16 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,506,390K ÷ $1,320,260K
= 1.90
The financial leverage ratio for LivaNova PLC has shown a downward trend from 2.16 in 2020 to 1.70 in 2021, before stabilizing at 1.90 from 2022 to 2024. This indicates that the company's reliance on debt to finance its operations has decreased initially but has since remained relatively stable. A lower financial leverage ratio suggests that the company is less dependent on debt financing, which may be seen as a positive sign of financial stability and lower risk. However, it is important to consider the specific industry and market conditions when evaluating the significance of this ratio.
Peer comparison
Dec 31, 2024