Revvity Inc. (RVTY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.79 | 3.47 | 3.26 | 3.27 | 3.25 |
| Receivables turnover | 4.36 | 4.35 | 5.40 | 3.74 | 3.27 |
| Payables turnover | 8.32 | 7.27 | 4.85 | 4.29 | 5.11 |
| Working capital turnover | 1.62 | 1.77 | 1.90 | 3.12 | 6.45 |
Revvity Inc.'s activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales.
1. Inventory Turnover: Revvity Inc. maintains a consistent inventory turnover ratio over the years, ranging from 3.25 to 3.79. This indicates that the company is effectively managing its inventory levels and turning over its inventory multiple times during a specific period.
2. Receivables Turnover: The receivables turnover ratio shows an increasing trend from 3.27 in 2020 to 4.36 in 2024. This signifies that Revvity Inc. has been improving its collection of accounts receivables, converting credit sales into cash at a faster rate over the years.
3. Payables Turnover: The payables turnover ratio ranges from 4.29 to 8.32, showing a notable increase from 2020 to 2024. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially taking advantage of favorable credit terms or managing its cash flow efficiently.
4. Working Capital Turnover: Revvity Inc.'s working capital turnover ratio has been decreasing over the years, declining from 6.45 in 2020 to 1.62 in 2024. A decreasing trend in this ratio suggests that the company is generating less revenue per dollar of working capital, which may indicate less efficient use of its working capital in generating sales.
Overall, Revvity Inc. maintains healthy activity ratios, with effective management of inventory and receivables turnover, alongside improving payables turnover. However, the declining trend in working capital turnover warrants further analysis to understand the company's efficiency in utilizing its working capital to drive sales.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.26 | 105.32 | 111.95 | 111.53 | 112.27 |
| Days of sales outstanding (DSO) | days | 83.75 | 83.97 | 67.54 | 97.62 | 111.46 |
| Number of days of payables | days | 43.85 | 50.22 | 75.33 | 85.06 | 71.42 |
Revvity Inc.'s activity ratios provide insights into how efficiently the company manages its operations.
1. Days of Inventory on Hand (DOH):
- There has been a gradual improvement in inventory management over the years, as reflected in decreasing DOH from 112.27 days in 2020 to 96.26 days in 2024. This suggests that the company is holding less inventory on hand, which may indicate improved inventory turnover and better working capital management.
2. Days of Sales Outstanding (DSO):
- The DSO ratio shows how long it takes for the company to collect payments from its customers. Revvity Inc. has shown fluctuations in DSO, with a significant improvement from 111.46 days in 2020 to 67.54 days in 2022, before slightly increasing to 83.75 days in 2024. Overall, the trend indicates better receivables management and potentially more efficient cash flow cycles.
3. Number of Days of Payables:
- The number of days of payables metric represents how long it takes for the company to pay its suppliers. Revvity Inc. has significantly reduced its payables period from 71.42 days in 2020 to 43.85 days in 2024. This suggests that the company is taking longer to settle its payables, which may be beneficial for improving cash flow and liquidity.
In summary, based on these activity ratios, Revvity Inc. has demonstrated improvements in inventory management, receivables collection, and payables turnover, indicating enhanced operational efficiency and working capital management over the years.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.72 | 5.40 | 6.86 | 7.88 | 10.27 |
| Total asset turnover | 0.22 | 0.20 | 0.23 | 0.26 | 0.48 |
The fixed asset turnover ratio for Revvity Inc. has shown a decreasing trend over the years, declining from 10.27 in 2020 to 5.72 in 2024. This indicates that the company's ability to generate sales from its fixed assets has weakened over time, possibly due to either slower sales growth or an increase in the value of fixed assets.
Similarly, the total asset turnover ratio has also decreased from 0.48 in 2020 to 0.22 in 2024. This suggests that Revvity Inc. is generating fewer sales revenue relative to its total assets, reflecting a decline in efficiency in utilizing its assets to generate revenue.
Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios indicates a declining efficiency in generating sales from both fixed and total assets, highlighting potential concerns regarding the company's asset utilization and operational performance.