Revvity Inc. (RVTY)

Revvity Inc.'s liquidity ratios indicate a positive trend in the company's ability to meet its short-term obligations. The current ratio, which measures current assets against current liabilities, has shown consistent improvement over the years, starting at 1.36 in 2020 and reaching a robust level of 3.60 in 2024. This suggests that Revvity Inc. has a healthy buffer of current assets to cover its current liabilities.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, Revvity Inc. has also displayed a favorable trend. Although there was a slight dip in 2022 to 0.69, the ratio recovered and increased significantly to 2.75 by the end of 2024. This indicates that the company has ample liquid assets to meet its short-term obligations without relying on inventory sales.

Furthermore, the cash ratio, which specifically considers the proportion of cash and cash equivalents to current liabilities, has notably improved over the years. Starting at 0.24 in 2020, the cash ratio has steadily increased to a strong level of 1.78 in 2024. This signifies that Revvity Inc. has a substantial amount of cash on hand relative to its current liabilities, enhancing its ability to handle immediate financial needs.

Overall, the liquidity ratios of Revvity Inc. demonstrate a strengthening financial position and a prudent management of short-term liquidity, reflecting positively on the company's ability to navigate potential financial challenges and meet its obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of Revvity Inc. has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 152.31 days, indicating a relatively lengthy period required to convert inputs into cash. Subsequently, by December 31, 2021, the cycle decreased to 124.09 days, suggesting an improvement in the efficiency of the company's operations.

In the following year, as of December 31, 2022, Revvity Inc. managed to further reduce its cash conversion cycle to 104.16 days, reflecting a more efficient management of its working capital. However, by December 31, 2023, the cycle increased to 139.07 days, indicating potential challenges in maintaining the efficiency achieved in the previous year.

Finally, as of December 31, 2024, the cash conversion cycle slightly decreased to 136.16 days compared to the previous year. It is essential for Revvity Inc. to continuously monitor and manage its cash conversion cycle to ensure optimal utilization of resources and working capital efficiency.