Revvity Inc. (RVTY)

Working capital 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
Revenue (ttm) US$ in thousands 2,755,399 2,792,741 2,753,945 2,745,319 2,747,137 2,721,641 2,788,191 3,000,774 3,311,822 3,598,518 3,748,030 3,763,135 3,827,812 4,154,512 4,257,222 4,158,193 3,782,749 3,233,635 2,976,533 2,887,332
Total current assets US$ in thousands 2,349,610 2,448,410 3,158,690 3,059,340 3,001,090 2,913,240 3,523,340 3,795,610 3,288,560 3,116,480 2,107,770 2,454,510 2,440,780 2,250,800 2,259,990 2,674,570 2,238,920 1,675,820 1,531,410 1,341,830
Total current liabilities US$ in thousands 653,100 687,940 1,390,010 1,374,220 1,450,460 1,447,840 1,366,830 1,563,740 1,544,480 1,485,730 1,043,810 1,263,050 1,213,740 1,145,030 1,122,820 1,520,510 1,652,190 1,244,800 1,163,260 730,144
Working capital turnover 1.62 1.59 1.56 1.63 1.77 1.86 1.29 1.34 1.90 2.21 3.52 3.16 3.12 3.76 3.74 3.60 6.45 7.50 8.09 4.72

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,755,399K ÷ ($2,349,610K – $653,100K)
= 1.62

The working capital turnover ratio for Revvity Inc. has experienced fluctuations over the periods presented. Starting at 4.72 on April 5, 2020, the ratio increased to a peak of 8.09 on July 5, 2020, indicating that the company generated 8.09 times the revenue compared to the working capital invested during that period.

Subsequently, the ratio decreased but remained relatively stable around the range of 6 to 7 until September 30, 2021. From March 31, 2022, onwards, the working capital turnover ratio began to decline more significantly, reaching 1.29 on June 30, 2023.

This decreasing trend continued through subsequent periods, with the ratio fluctuating between 1.29 and 1.86 until December 31, 2024. Notably, the working capital turnover ratio decreased to its lowest point of 1.29 on June 30, 2023, and showed a slight increase to 1.62 by December 31, 2024.

Overall, the declining trend in the working capital turnover ratio for Revvity Inc. suggests a decreasing efficiency in utilizing its working capital to generate revenue over the periods analyzed, indicating a need to evaluate and potentially improve the company's working capital management strategies.