Revvity Inc. (RVTY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	136.68	83.51	101.57	125.69	111.95	98.53	158.80	165.15	111.53	153.25	114.59	116.30	112.27	114.38	117.76	96.24	87.58	97.93	105.19	96.35
Days of sales outstanding (DSO)	days	83.39	85.73	81.41	—	67.54	—	—	—	97.62	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	65.18	36.09	54.81	78.11	75.33	71.85	84.89	96.31	85.06	76.08	72.47	74.47	71.42	60.66	62.89	57.09	57.87	47.55	47.74	56.13
Cash conversion cycle	days	154.89	133.15	128.17	47.57	104.16	26.68	73.92	68.84	124.09	77.16	42.12	41.83	40.85	53.72	54.86	39.15	29.71	50.38	57.45	40.22

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.68 + 83.39 – 65.18
= 154.89

The cash conversion cycle of Revvity Inc. has demonstrated fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 151.48 days, showing a decrease from the previous quarter. However, this cycle remained higher compared to Q1 and Q4 2022 figures.

The cash conversion cycle reached its peak in Q3 2023 at 225.59 days, indicating that the company took longer to convert inventory and receivables into cash during that period. This significant increase in days may suggest potential inefficiencies in managing working capital during that quarter.

In contrast, Q2 2022 and Q3 2022 showed relatively lower cash conversion cycles of 114.02 days and 61.36 days, respectively, indicating efficient management of working capital during those periods. This improvement in efficiency was followed by a spike in Q1 2023, reaching 135.86 days.

Overall, Revvity Inc. should continuously monitor and manage its cash conversion cycle to optimize working capital efficiency and liquidity, as fluctuations in this metric can impact the company's financial health and operational performance.