Revvity Inc. (RVTY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	96.27	100.79	99.13	101.00	105.32	70.85	83.47	98.74	111.95	98.53	158.80	165.15	111.53	153.25	114.59	116.30	112.27	114.38	117.76	96.24
Days of sales outstanding (DSO)	days	83.77	78.70	79.18	78.31	84.08	86.44	82.07	—	67.54	—	—	—	97.62	—	—	—	—	—	—	—
Number of days of payables	days	43.86	43.95	43.18	44.77	50.22	30.62	45.04	61.37	75.33	71.85	84.89	96.31	85.06	76.08	72.47	74.47	71.42	60.66	62.89	57.09
Cash conversion cycle	days	136.18	135.54	135.13	134.53	139.18	126.67	120.50	37.37	104.16	26.68	73.92	68.84	124.09	77.16	42.12	41.83	40.85	53.72	54.86	39.15

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.27 + 83.77 – 43.86
= 136.18

Revvity Inc.'s cash conversion cycle has shown fluctuations over the periods analyzed. The cash conversion cycle, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from a low of 26.68 days on September 30, 2022, to a high of 139.18 days on December 31, 2023.

The general trend in Revvity Inc.'s cash conversion cycle indicates that the company might be facing challenges in efficiently managing its cash flow and working capital. A longer cash conversion cycle suggests that the company is taking more time to convert its investments into cash, potentially indicating inefficiencies in inventory management, sales cycle duration, or accounts receivable collection.

It is notable that there are significant spikes in the cash conversion cycle on certain dates, such as December 31, 2023, and December 31, 2024, indicating potential issues that may require further investigation. These extended cycles could signify cash flow constraints or operational challenges affecting the company's ability to convert assets into cash efficiently.

Overall, a thorough analysis and corrective actions may be necessary for Revvity Inc. to optimize its cash conversion cycle, improve working capital management, and enhance overall financial performance.