Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. LivaNova's annualized net income for the quarter that ended in Dec. 2023 was $65 Mil. LivaNova's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $172 Mil. Therefore, LivaNova's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 37.97%.
The historical rank and industry rank for LivaNova's Return-on-Tangible-Equity or its related term are showing as below:
LIVN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -262.48 Med: -4.69 Max: 23.47
Current: 14.44
During the past 13 years, LivaNova's highest Return-on-Tangible-Equity was 23.47%. The lowest was -262.48%. And the median was -4.69%.
LIVN's Return-on-Tangible-Equity is ranked better than 77.18% of 767
companies
in the Medical Devices & Instruments industry
Industry Median: 2.07
vs LIVN: 14.44
LivaNova Return-on-Tangible-Equity Historical Data
The historical data trend for LivaNova's Return-on-Tangible-Equity 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.
Competitive Comparison of LivaNova's Return-on-Tangible-Equity
For the Medical Devices subindustry, LivaNova's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, LivaNova's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LivaNova's Return-on-Tangible-Equity falls into.
LivaNova Return-on-Tangible-Equity Calculation
LivaNova's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
LivaNova Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of LivaNova's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
U.K.-based LivaNova was born of a combination between Cyberonics in the U.S. and Sorin in Italy. The medical device firm is primarily focused on cardiovascular and cardiopulmonary solutions (with surgical heart valves, 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. LivaNova derives roughly half of its revenue from the U.S. market, another 21% from Europe, and the remainder from the rest of the world.
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