Revvity Inc. (RVTY)

Payables 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
Payables	US$ in thousands	167,463	176,407	174,871	183,532	204,121	188,302	235,721	266,884	272,826	275,824	333,711	376,694	324,811	320,435	324,711	339,326	327,325	258,038	255,137	233,227
Payables turnover		8.32	8.31	8.45	8.15	7.27	11.92	8.10	5.95	4.85	5.08	4.30	3.79	4.29	4.80	5.04	4.90	5.11	6.02	5.80	6.39

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,393,688K ÷ $167,463K
= 8.32

Revvity Inc.'s payables turnover ratio has fluctuated over the periods under consideration. The payables turnover ratio measures how efficiently a company is managing its payables by evaluating how many times a company pays off its average accounts payable balance during a specific period.

From April 5, 2020, to September 30, 2021, the payables turnover ratio ranged between 6.39 and 4.80, indicating that the company was efficiently managing its payables during this period. However, from March 31, 2022, to March 31, 2024, the ratio declined steadily from 3.79 to 8.15, suggesting a potential issue with managing payables effectively.

Notably, the payables turnover ratio spiked to 11.92 on September 30, 2023, before returning to a more stabilized range of 7.27 to 8.45 from December 31, 2023, to June 30, 2024. This increase and subsequent stabilization could indicate changes in the company's payment terms or supplier relationships.

Overall, Revvity Inc. should monitor its payables turnover ratio closely to ensure efficient management of payables and maintain healthy vendor relationships for sustainable operations.