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.
Peer comparison
Dec 31, 2023