Revvity Inc. (RVTY)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,393,790	1,483,450	1,321,990	1,393,820	1,672,870
Inventory	US$ in thousands	367,587	428,062	405,462	425,890	514,567
Inventory turnover		3.79	3.47	3.26	3.27	3.25

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,393,790K ÷ $367,587K
= 3.79

Based on the data provided, Revvity Inc.'s inventory turnover has displayed a relatively stable trend over the years, with values ranging from 3.25 to 3.79. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times it sells and replaces its inventory within a specific period.

Revvity Inc.'s inventory turnover has slightly increased from 3.25 in December 2020 to 3.79 in December 2024, suggesting improvements in inventory management efficiency or sales performance. A higher inventory turnover ratio generally signifies that the company is selling its inventory more quickly, which can lead to lower carrying costs and potential risks associated with obsolete inventory.

However, it is essential to consider industry norms and benchmarks when evaluating inventory turnover ratios to determine if Revvity Inc. is performing comparably or if there is room for further enhancement in inventory management practices. Further analysis and correlation with other financial metrics would provide a comprehensive understanding of the company's overall operational efficiency.