Revvity Inc. (RVTY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.38 | 4.26 | 4.48 | — | 5.40 | — | — | — | 3.74 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 5.60 | 10.11 | 6.66 | 4.67 | 4.85 | 5.08 | 4.30 | 3.79 | 4.29 | 4.80 | 5.04 | 4.90 | 5.11 | 6.02 | 5.80 | 6.39 | 6.31 | 7.68 | 7.65 | 6.50 |
| Working capital turnover | 1.79 | 1.87 | 1.30 | 1.35 | 1.90 | 2.21 | 3.52 | 3.16 | 3.12 | 3.76 | 3.74 | 3.60 | 6.45 | 7.50 | 8.09 | 4.72 | 4.72 | 7.87 | 4.44 | 5.51 |
Revvity Inc.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate sales.
1. Inventory turnover: Revvity Inc.'s inventory turnover has shown a declining trend over the quarters, indicating that the company is holding onto its inventory for a longer period before selling it. This could potentially result in higher carrying costs and a risk of obsolescence.
2. Receivables turnover: The receivables turnover ratio has also decreased over the quarters, which means the company is taking longer to collect payments from its customers. This may lead to liquidity challenges if cash flow is tied up in accounts receivable for extended periods.
3. Payables turnover: Revvity Inc.'s payables turnover ratio has been fluctuating but generally shows that the company is taking more time to pay its suppliers. While this can be beneficial in managing cash flow, it is essential to ensure timely payments to maintain good relationships with vendors.
4. Working capital turnover: The working capital turnover ratio has decreased steadily over the quarters, indicating that the company is generating fewer sales relative to its working capital. This could imply inefficiencies in the utilization of resources and may require a closer examination of working capital management practices.
Overall, Revvity Inc. should focus on optimizing its inventory management, improving accounts receivable collection processes, and balancing timely payments to suppliers to enhance its overall operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 136.68 | 83.51 | 101.57 | 125.69 | 111.95 | 98.53 | 158.80 | 165.15 | 111.53 | 153.25 | 114.59 | 116.30 | 112.27 | 114.38 | 117.76 | 96.24 | 87.58 | 97.93 | 105.19 | 96.35 |
| Days of sales outstanding (DSO) | days | 83.39 | 85.73 | 81.41 | — | 67.54 | — | — | — | 97.62 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 65.18 | 36.09 | 54.81 | 78.11 | 75.33 | 71.85 | 84.89 | 96.31 | 85.06 | 76.08 | 72.47 | 74.47 | 71.42 | 60.66 | 62.89 | 57.09 | 57.87 | 47.55 | 47.74 | 56.13 |
Activity ratios are key measures of how effectively a company manages its inventory, receivables, and payables. Let's analyze these ratios for Revvity Inc. based on the data provided:
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increasing level of inventory days over the past eight quarters.
- In Q4 2023, Revvity Inc. had inventory on hand for approximately 129.03 days, indicating a slowdown in inventory turnover compared to previous quarters.
- This implies that the company is taking longer to sell its inventory, which may tie up capital and potentially lead to obsolescence or storage costs.
2. Days of Sales Outstanding (DSO):
- The DSO trend for Revvity Inc. has been fluctuating but generally increasing over the past eight quarters.
- In Q4 2023, the company took approximately 83.97 days to collect its receivables.
- The rising DSO suggests a slower collection of accounts receivable, potentially impacting the company's cash flow and liquidity.
3. Number of Days of Payables:
- Revvity Inc.'s days of payables trend displays fluctuations but generally increasing payment periods over the past eight quarters.
- In Q4 2023, the company had an average of 61.53 days to settle its payables.
- A longer period to pay suppliers can offer short-term cash flow advantages but may strain relationships and affect future credit terms.
Overall, when looking at these activity ratios, Revvity Inc. shows signs of potential inefficiencies in managing its inventory, accounts receivable, and accounts payable. It may be beneficial for the company to review and optimize its operating cycle to enhance cash flow and operational efficiency in the future.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.43 | 5.60 | 5.73 | 6.16 | 6.86 | 7.82 | 7.02 | 6.88 | 7.88 | 7.73 | 11.23 | 11.20 | 10.27 | 9.61 | 9.22 | 9.20 | 9.06 | 9.50 | 9.26 | 9.49 |
| Total asset turnover | 0.20 | 0.20 | 0.20 | 0.21 | 0.23 | 0.26 | 0.26 | 0.25 | 0.26 | 0.28 | 0.49 | 0.47 | 0.48 | 0.47 | 0.45 | 0.45 | 0.44 | 0.44 | 0.44 | 0.46 |
The fixed asset turnover ratio for Revvity Inc. has fluctuated over the past eight quarters, with a high of 9.92 in Q3 2022 and a low of 4.42 in Q3 2023. This ratio measures how efficiently the company is generating sales revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue.
On the other hand, the total asset turnover ratio has also varied during the same period, with a peak of 0.35 in Q2 2022 and a trough of 0.16 in Q2 and Q3 2023. This ratio evaluates the company's ability to generate sales from its total assets. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate revenue.
Overall, the trend in both ratios indicates fluctuations in the efficiency of Revvity Inc. in utilizing its fixed assets and total assets to generate sales revenue over the past eight quarters. It is essential for the company to closely monitor and manage its asset turnover ratios to ensure optimal utilization of its assets and drive revenue growth.