Revvity Inc. (RVTY)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,393,688	1,465,094	1,478,112	1,496,240	1,483,452	2,244,670	1,910,057	1,587,425	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
Inventory	US$ in thousands	367,587	404,570	401,432	414,029	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
Inventory turnover		3.79	3.62	3.68	3.61	3.47	5.15	4.37	3.70	3.26	3.70	2.30	2.21	3.27	2.38	3.19	3.14	3.25	3.19	3.10	3.79

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,393,688K ÷ $367,587K
= 3.79

Revvity Inc.'s inventory turnover has shown some fluctuations over the years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the inventory is sold and replaced.

Looking at the data, the inventory turnover ranged from a low of 2.21 on March 31, 2022, to a high of 5.15 on September 30, 2023. These fluctuations suggest changes in how quickly the company is selling its inventory relative to the amount of inventory it holds.

Overall, there seems to be a general trend of improvement in inventory turnover from the lowest point in March 2022 to the highest point in September 2023. However, there were fluctuations in the subsequent periods, indicating potential challenges in managing inventory levels efficiently.

It's important for Revvity Inc. to analyze the reasons behind these fluctuations in inventory turnover and identify strategies to optimize inventory management. A consistently high or increasing inventory turnover ratio generally indicates effective inventory management, which can lead to increased profitability and liquidity for the company.