Revvity Inc. (RVTY)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,756,080 | 2,750,570 | 3,311,820 | 3,827,810 | 3,782,740 |
| Total assets | US$ in thousands | 12,392,500 | 13,564,700 | 14,129,900 | 15,000,600 | 7,960,320 |
| Total asset turnover | 0.22 | 0.20 | 0.23 | 0.26 | 0.48 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,756,080K ÷ $12,392,500K
= 0.22
Based on the provided data, Revvity Inc.'s total asset turnover has shown a declining trend over the past five years. The total asset turnover ratio measures a company's ability to generate sales revenue from its assets.
In December 31, 2020, Revvity Inc. had a total asset turnover of 0.48, indicating that the company generated $0.48 in sales for every $1 of assets. However, this ratio decreased to 0.26 by December 31, 2021, implying a decrease in the efficiency of asset utilization.
The trend continued to decline over the following years, with total asset turnover ratios of 0.23, 0.20, and 0.22 for December 31, 2022, 2023, and 2024, respectively. This suggests that Revvity Inc. was less efficient in utilizing its assets to generate sales revenue during these periods.
Overall, the decreasing trend in total asset turnover indicates a potential inefficiency in how Revvity Inc. is managing its assets to generate sales, which may require further analysis and strategic management decisions to improve operational efficiency and profitability.
Peer comparison
Dec 31, 2024