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LIVN (LivaNova) Piotroski F-Score : 5 (As of Oct. 31, 2024)


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What is LivaNova Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LivaNova has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for LivaNova's Piotroski F-Score or its related term are showing as below:

LIVN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of LivaNova was 8. The lowest was 2. And the median was 5.


LivaNova Piotroski F-Score Historical Data

The historical data trend for LivaNova's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LivaNova Piotroski F-Score Chart

LivaNova Annual Data
Trend Apr14 Apr15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 2.00 6.00 6.00 5.00

LivaNova Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 5.00 -

Competitive Comparison of LivaNova's Piotroski F-Score

For the Medical Devices subindustry, LivaNova's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LivaNova's Piotroski F-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, LivaNova's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where LivaNova's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 16.339 + -41.9 + 16.3 + 33 = $24 Mil.
Cash Flow from Operations was 53.958 + 10 + 43.3 + 50.963 = $158 Mil.
Revenue was 310.132 + 294.9 + 318.6 + 318.1 = $1,242 Mil.
Gross Profit was 190.167 + 207.4 + 218.9 + 225.3 = $842 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(2329.417 + 2429.563 + 2459.6 + 2453.2 + 2522) / 5 = $2438.756 Mil.
Total Assets at the begining of this year (Sep23) was $2,329 Mil.
Long-Term Debt & Capital Lease Obligation was $648 Mil.
Total Current Assets was $1,093 Mil.
Total Current Liabilities was $324 Mil.
Net Income was 1.661 + 7.37 + 1.155 + -7.318 = $3 Mil.

Revenue was 274.874 + 263.418 + 293.882 + 286.113 = $1,118 Mil.
Gross Profit was 183.517 + 174.083 + 205.197 + 201.803 = $765 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(2212.878 + 2294.773 + 2294.888 + 2341.555 + 2329.417) / 5 = $2294.7022 Mil.
Total Assets at the begining of last year (Sep22) was $2,213 Mil.
Long-Term Debt & Capital Lease Obligation was $593 Mil.
Total Current Assets was $954 Mil.
Total Current Liabilities was $295 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LivaNova's current Net Income (TTM) was 24. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LivaNova's current Cash Flow from Operations (TTM) was 158. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=23.739/2329.417
=0.01019096

ROA (Last Year)=Net Income/Total Assets (Sep22)
=2.868/2212.878
=0.00129605

LivaNova's return on assets of this year was 0.01019096. LivaNova's return on assets of last year was 0.00129605. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

LivaNova's current Net Income (TTM) was 24. LivaNova's current Cash Flow from Operations (TTM) was 158. ==> 158 > 24 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=648.4/2438.756
=0.26587326

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=593.355/2294.7022
=0.25857604

LivaNova's gearing of this year was 0.26587326. LivaNova's gearing of last year was 0.25857604. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=1093.1/324.4
=3.36960543

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=953.867/295.396
=3.22911278

LivaNova's current ratio of this year was 3.36960543. LivaNova's current ratio of last year was 3.22911278. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

LivaNova's number of shares in issue this year was 54.6. LivaNova's number of shares in issue last year was 53.989. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=841.767/1241.732
=0.67789749

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=764.6/1118.287
=0.6837243

LivaNova's gross margin of this year was 0.67789749. LivaNova's gross margin of last year was 0.6837243. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=1241.732/2329.417
=0.53306557

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=1118.287/2212.878
=0.50535411

LivaNova's asset turnover of this year was 0.53306557. LivaNova's asset turnover of last year was 0.50535411. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LivaNova has an F-score of 6 indicating the company's financial situation is typical for a stable company.

LivaNova  (NAS:LIVN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


LivaNova Piotroski F-Score Related Terms

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LivaNova Business Description

Traded in Other Exchanges
Address
20 Eastbourne Terrace, London, GBR, W2 6LG
UK-based LivaNova was born of a combination between Cyberonics in the US and Sorin in Italy. The medical-device firm is primarily focused on cardiopulmonary solutions (with heart-lung machines and oxygenation equipment) as well as neuromodulation devices for treatment-resistant epilepsy and depression. Following the merger, LivaNova divested its cardiac rhythm management and heart valve businesses. It derives roughly half of its revenue from the US market, another 21% from Europe, and the remainder from the rest of the world.
Executives
Francesco Bianchi director C/O LIVANOVA PLC, 5 MERCHANT SQUARE, LONDON X0 W2 1AY
Daniel Jeffrey Moore director 100 CYBERONICS BVLD, HOUSTON TX 77058
James Christopher Barry director 7475 LUSK BLVD, SAN DIEGO CA 92121
Damien Mcdonald officer: COO 5 MERCHANT SQUARE, NORTH WHARF ROAD, LONDON X0 W21AY
Michael Damon Hutchinson officer: Chief Legal Officer 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Brooke Story director C/O SIGILON THERAPEUTICS, INC., 100 BINNEY STREET, SUITE 600, CAMBRIDGE MA 02142
Peter M Wilver director
Alfred J Novak director 325 NE 6TH ST, BOCA RATON FL 33432
William A Kozy director C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417
Marco Dolci officer: SVP Global Operations, R&D VIA BENIGNO CRESPI 17, MILAN L6 20159
Todd C Schermerhorn director C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974
Alex Shvartsburg officer: Interim CFO 20 EASTBOURNE TERRACE, LONDON X0 W26LG
Roy Khoury officer: President, International 5 MERCHANT SQUARE, NORTH WHARF ROAD, LONDON X0 W21AY
Thad Allen Huston officer: Chief Financial Officer 941 BLOOMFIELD ST, HOBOKEN NJ 07030
Seng Stacy Enxing director C/O HILL-ROM HOLDINGS, INC., SUITE 4100 180 NORTH STETSON AVENUE, CHICAGO IL 60601