LivaNova PLC (LIVN)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-22,477	75,941	-30,423	-17,137	-26,945	-42,665	20,493	-48,918	-74,469	-362,466	-336,367	-317,718	-308,942	-170,523	-140,153	-154,063	-170,459	-303,205	-336,648	-288,281
Interest expense (ttm)	US$ in thousands	58,853	56,593	54,268	53,847	48,250	41,234	39,928	42,055	50,151	59,406	62,724	51,924	40,837	29,838	19,939	18,278	15,091	12,565	10,424	9,376
Interest coverage		-0.38	1.34	-0.56	-0.32	-0.56	-1.03	0.51	-1.16	-1.48	-6.10	-5.36	-6.12	-7.57	-5.71	-7.03	-8.43	-11.30	-24.13	-32.30	-30.75

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-22,477K ÷ $58,853K
= -0.38

LivaNova PLC's interest coverage ratio has shown fluctuating trends over the past eight quarters. The ratio has ranged from a low of 0.10 in Q1 2022 to a high of 1.79 in Q2 2022. This indicates that the company's ability to cover its interest expenses with operating profits has varied significantly.

The declining trend from Q2 2022 to Q2 2023, reaching a low of 0.53, suggests a potential challenge in generating sufficient operating income to meet interest obligations. However, there was a slight improvement in Q3 2023 and Q4 2023, although the ratios remained below 1.00, indicating the company's ongoing struggle to comfortably cover its interest expenses.

Overall, the downward trend in interest coverage ratios raises concerns about LivaNova PLC's financial health and ability to service its debt in the long term. Investors and stakeholders should closely monitor future financial performance to ensure sustainable management of interest obligations.