Revvity Inc. (RVTY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,750,570	3,311,820	3,827,810	3,782,740	2,883,670
Total current assets	US$ in thousands	3,001,090	3,288,560	2,440,780	2,238,920	1,374,380
Total current liabilities	US$ in thousands	1,450,460	1,544,480	1,213,740	1,652,190	762,832
Working capital turnover		1.77	1.90	3.12	6.45	4.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,750,570K ÷ ($3,001,090K – $1,450,460K)
= 1.77

The working capital turnover of Revvity Inc. has displayed a declining trend over the past five years, with figures of 1.77 in 2023, 1.90 in 2022, 4.13 in 2021, 6.45 in 2020, and 4.72 in 2019.

A lower working capital turnover ratio indicates that the company is taking longer to convert its working capital into revenue. This could be due to increased investments in short-term assets, inefficient management of inventory, or challenges in collecting receivables.

On the other hand, a higher working capital turnover ratio signifies that the company is more efficient in utilizing its working capital to generate revenue. However, an extremely high ratio may also indicate that the company is operating with too little working capital, which could potentially lead to liquidity issues.

Overall, the downward trend in Revvity Inc.'s working capital turnover suggests potential inefficiencies in managing its working capital levels and converting them into sales revenue. Further analysis of the company's working capital components and operational efficiency may be necessary to address these issues and improve overall financial performance.