LivaNova PLC (LIVN)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	94,472	-21,241	-43,883	-63,988	-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
Interest expense (ttm)	US$ in thousands	21,603	31,316	40,802	61,309	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
Interest coverage		4.37	-0.68	-1.08	-1.04	-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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $94,472K ÷ $21,603K
= 4.37

The interest coverage ratio for LivaNova PLC has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. During the initial period, the company had negative interest coverage ratios, indicating that the earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses. This suggests a higher financial risk for the company during those periods.

However, from June 30, 2022, onwards, the interest coverage ratio started to improve and turned positive, reaching its highest point of 4.37 as of December 31, 2024. This improvement indicates that the company's operating profits were more than sufficient to meet its interest obligations, signaling a healthier financial position and lower risk of default on its debt.

Overall, the trend in LivaNova PLC's interest coverage ratio reflects a significant improvement in its ability to cover interest expenses and suggests a strengthening financial position over the latter period of the analysis.