Revvity Inc. (RVTY)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	2,769,887	2,744,391	2,810,941	3,023,524	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	2,883,673	2,834,526	2,801,916	2,782,761
Total current assets	US$ in thousands	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	1,374,380	1,548,400	1,337,760	1,247,650
Total current liabilities	US$ in thousands	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	762,832	1,188,100	706,799	742,268
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,769,887K ÷ ($3,001,090K – $1,450,460K)
= 1.79

Revvity Inc.'s working capital turnover has seen fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates more efficient utilization of working capital.

In Q4 2023, the working capital turnover was 1.77, indicating that the company generated $1.77 in sales revenue for every dollar of working capital invested. This was an improvement compared to the previous quarter, Q3 2023, where the ratio was 1.48.

However, the working capital turnover ratio in Q4 2023 was lower than the ratios in earlier quarters of the year, such as Q2 2023 (1.02) and Q1 2023 (1.22). This suggests a decrease in the efficiency of working capital utilization in the most recent quarter compared to earlier quarters.

Comparing the Q4 2023 ratio to the same quarter in the previous year, there has been a decline in efficiency, as the ratio was 1.90 in Q4 2022. The trend over the past year shows a decreasing efficiency in working capital turnover, which may require further analysis to understand the underlying reasons for this performance.