Revvity Inc. (RVTY)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,756,080 2,750,570 3,311,820 3,827,810 3,782,740
Property, plant and equipment US$ in thousands 482,217 509,654 482,950 485,531 368,304
Fixed asset turnover 5.72 5.40 6.86 7.88 10.27

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,756,080K ÷ $482,217K
= 5.72

Fixed asset turnover is a financial ratio that measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Revvity Inc., the trend of the fixed asset turnover ratio has been declining over the past five years. The ratio decreased from 10.27 in December 2020 to 5.72 in December 2024.

A high fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate revenue, whereas a decreasing ratio may suggest inefficiencies in asset utilization or a decrease in revenue generation relative to the fixed asset base.

Revvity Inc.'s declining fixed asset turnover ratio may raise concerns about the company's ability to efficiently utilize its fixed assets to generate sales. Further analysis is necessary to understand the underlying factors contributing to this trend and to assess the company's overall operational effectiveness and financial performance.