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LIVN (LivaNova) Interest Coverage : 2.24 (As of Sep. 2024)


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What is LivaNova Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. LivaNova's Operating Income for the three months ended in Sep. 2024 was $36 Mil. LivaNova's Interest Expense for the three months ended in Sep. 2024 was $-16 Mil. LivaNova's interest coverage for the quarter that ended in Sep. 2024 was 2.24. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for LivaNova's Interest Coverage or its related term are showing as below:

LIVN' s Interest Coverage Range Over the Past 10 Years
Min: 0.36   Med: 8.72   Max: 4635.43
Current: 1.01


LIVN's Interest Coverage is ranked worse than
93.29% of 417 companies
in the Medical Devices & Instruments industry
Industry Median: 17.9 vs LIVN: 1.01

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


LivaNova Interest Coverage Historical Data

The historical data trend for LivaNova's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

LivaNova Interest Coverage Chart

LivaNova Annual Data
Trend Apr14 Apr15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.89 - - 1.09 0.36

LivaNova Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage 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 0.30 0.13 1.02 2.60 2.24

Competitive Comparison of LivaNova's Interest Coverage

For the Medical Devices subindustry, LivaNova's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, LivaNova's Interest Coverage distribution charts can be found below:

* The bar in red indicates where LivaNova's Interest Coverage falls into.



LivaNova Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

LivaNova's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, LivaNova's Interest Expense was $-59 Mil. Its Operating Income was $21 Mil. And its Long-Term Debt & Capital Lease Obligation was $614 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*21.476/-58.853
=0.36

LivaNova's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, LivaNova's Interest Expense was $-16 Mil. Its Operating Income was $36 Mil. And its Long-Term Debt & Capital Lease Obligation was $648 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*35.6/-15.9
=2.24

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


LivaNova  (NAS:LIVN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


LivaNova Interest Coverage Related Terms

Thank you for viewing the detailed overview of LivaNova's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


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