Revvity Inc. (RVTY)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jul 5, 2020	Apr 5, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,143,095	1,904,313	1,569,700	1,247,068	1,321,992	1,401,220	1,434,916	1,427,595	1,393,821	1,537,249	1,635,374	1,663,144	1,672,868	1,552,642	1,480,710	1,491,060	1,487,618	1,460,402	1,437,740	1,426,238
Inventory	US$ in thousands	428,062	435,696	436,822	429,423	405,462	378,256	624,297	645,924	425,890	645,419	513,429	529,908	514,567	486,555	477,707	393,164	356,937	391,820	414,330	376,507
Inventory turnover		2.67	4.37	3.59	2.90	3.26	3.70	2.30	2.21	3.27	2.38	3.19	3.14	3.25	3.19	3.10	3.79	4.17	3.73	3.47	3.79

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,143,095K ÷ $428,062K
= 2.67

The inventory turnover for Revvity Inc. has varied over the past eight quarters, ranging from a low of 1.77 in Q3 2023 to a high of 5.46 in Q3 2022. In general, a higher inventory turnover indicates that a company is selling its inventory more quickly, which can be a positive sign of efficient operations. Conversely, a lower inventory turnover may suggest that inventory is not moving as fast, potentially leading to storage costs and obsolescence risk.

Looking at the trend for Revvity Inc., we see that there was a significant decrease in inventory turnover from Q3 2022 to Q1 2023, followed by a slight increase in Q2 and Q4 2023. The peak in inventory turnover in Q3 2022 indicates strong sales relative to inventory levels at that time. It is essential for the company to monitor and manage inventory effectively to maintain an optimal balance between keeping enough stock to meet demand and minimizing excess inventory.

Overall, Revvity Inc. should continue to assess its inventory turnover ratios regularly to ensure efficient inventory management and make informed decisions to improve operational performance and financial health.