Revvity Inc. (RVTY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,750,570	3,311,820	3,827,810	3,782,740	2,883,670
Property, plant and equipment	US$ in thousands	509,654	482,950	485,531	368,304	318,223
Fixed asset turnover		5.40	6.86	7.88	10.27	9.06

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,750,570K ÷ $509,654K
= 5.40

The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is generating more sales per dollar of fixed assets.

Looking at Revvity Inc.'s fixed asset turnover over the past five years, we observe a declining trend. In 2023, the fixed asset turnover ratio decreased to 5.40 from 6.86 in 2022, indicating that the company generated less revenue per dollar of fixed assets compared to the previous year.

Further back in 2022, the fixed asset turnover ratio was 9.29, which was a significant decrease from 10.27 in 2021. The company's efficiency in utilizing fixed assets to generate sales declined noticeably in 2022.

Going back to 2021, Revvity Inc. had a fixed asset turnover of 10.27, which was slightly lower than the previous year's ratio of 9.06. However, the company demonstrated solid efficiency in converting fixed assets into revenue in 2021.

Overall, the declining trend in Revvity Inc.'s fixed asset turnover over the past few years suggests a potential decrease in the company's efficiency in utilizing its fixed assets to generate sales. Management may need to investigate the reasons behind this trend and consider strategies to improve the efficiency of fixed asset utilization in the future.