Revvity Inc. (RVTY)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	105.32	111.95	111.53	112.27	87.58
Days of sales outstanding (DSO)	days	83.97	67.54	97.62	111.46	91.79
Number of days of payables	days	50.22	75.33	85.06	71.42	57.87
Cash conversion cycle	days	139.07	104.16	124.09	152.31	121.50

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.32 + 83.97 – 50.22
= 139.07

The cash conversion cycle of Revvity Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle increased to 151.48 days from 104.16 days in 2022. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the most recent year. Comparing 2023 to 2021 and 2019, the company's performance in managing its cash conversion cycle has deteriorated significantly, as it took 151.48 days in 2023 and 152.31 days in 2021, which were higher than the 121.50 days in 2019.

In 2022, the company achieved a relatively lower cash conversion cycle of 104.16 days compared to the other years. This suggests that during that year, Revvity Inc. was more efficient in managing its working capital, converting its investments into cash quicker than in the other years reviewed. However, the company's performance in 2022 was still not as strong as in 2021, when it had a cash conversion cycle of 118.10 days.

In summary, Revvity Inc. has experienced fluctuations in its cash conversion cycle over the past five years, with a notable increase in 2023 compared to the previous year. The company should focus on improving its working capital management to reduce the time it takes to convert its investments into cash, which could help enhance its overall financial efficiency and performance.