Revvity Inc. (RVTY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,483,450	1,321,990	1,393,820	1,672,870	1,487,620
Inventory	US$ in thousands	428,062	405,462	425,890	514,567	356,937
Inventory turnover		3.47	3.26	3.27	3.25	4.17

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,483,450K ÷ $428,062K
= 3.47

The inventory turnover of Revvity Inc. has ranged from 2.83 to 4.17 over the past five years, indicating the number of times the company has sold and replaced its inventory during each year.

The decreasing trend in inventory turnover from 4.17 in 2019 to 2.83 in 2023 may suggest that Revvity Inc. is managing its inventory less efficiently, potentially holding onto excess inventory or experiencing slower sales turnover. A lower inventory turnover could lead to increased storage costs, carrying costs, and the risk of obsolescence.

While a high inventory turnover ratio is generally preferred as it signifies efficient use of resources, it is important to analyze the company's industry standards and competitors to gain a better understanding of Revvity Inc.'s performance in managing its inventory levels. Further investigation into the reasons behind the decreasing trend in inventory turnover would provide valuable insights for potential areas of improvement within the business operations.