Revvity Inc. (RVTY)
Working capital 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 current assets | US$ in thousands | 2,349,610 | 3,001,090 | 3,288,560 | 2,440,780 | 2,238,920 |
| Total current liabilities | US$ in thousands | 653,100 | 1,450,460 | 1,544,480 | 1,213,740 | 1,652,190 |
| Working capital turnover | 1.62 | 1.77 | 1.90 | 3.12 | 6.45 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,756,080K ÷ ($2,349,610K – $653,100K)
= 1.62
Based on the data provided, the working capital turnover of Revvity Inc. has been declining over the years.
In December 2020, the working capital turnover was 6.45, indicating that the company generated $6.45 in revenue for every dollar of working capital invested. However, by December 2024, this ratio decreased to 1.62, suggesting a significant decrease in revenue generated per dollar of working capital.
This declining trend in working capital turnover may indicate inefficiencies in the management of working capital. It could suggest that the company is struggling to efficiently utilize its working capital to generate revenue.
A working capital turnover ratio less than 1 could signify that the company is not effectively utilizing its working capital to support its operations. In this case, it would be important for Revvity Inc. to review and improve its working capital management strategies to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2024