Revvity Inc. (RVTY)

Liquidity ratios

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
Current ratio 3.60 3.56 2.27 2.23 2.07 2.01 2.58 2.43 2.13 2.10 2.02 1.94 2.01 1.97 2.01 1.76 1.36 1.35 1.32 1.84
Quick ratio 2.75 2.66 1.84 1.66 1.54 1.43 1.97 1.57 0.69 0.27 0.33 0.52 1.35 0.41 0.51 0.65 0.23 0.21 0.19 0.27
Cash ratio 1.78 1.79 1.41 1.23 1.11 0.99 1.52 1.57 0.29 0.27 0.33 0.52 0.51 0.41 0.51 0.65 0.23 0.21 0.19 0.27

Revvity Inc.'s liquidity ratios exhibit a positive trend over the years, indicating strong short-term financial health.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has steadily increased from 1.84 on April 5, 2020, to 3.60 on December 31, 2024. This suggests that Revvity Inc. has ample current assets to meet its current liabilities, providing a buffer against potential liquidity issues.

The quick ratio, also known as the acid-test ratio, considers only the most liquid assets like cash and accounts receivable to cover current liabilities. Revvity Inc.'s quick ratio has shown fluctuations but generally improved from 0.19 on July 5, 2020, to 2.75 on December 31, 2024. This indicates the company's ability to meet its short-term obligations without relying heavily on inventory.

Moreover, the cash ratio, which specifically focuses on the ability to cover current liabilities with cash and cash equivalents, has also increased over time, from 0.19 on July 5, 2020, to 1.78 on December 31, 2024. This demonstrates Revvity Inc.'s growing capacity to settle its short-term debts with readily available cash resources.

Overall, Revvity Inc.'s liquidity ratios paint a favorable picture of the company's ability to manage its short-term financial obligations effectively and may indicate a strong position to handle unforeseen challenges or capitalize on new opportunities in the future.

Additional liquidity measure

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
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

Revvity Inc.'s cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has exhibited fluctuations over the years.

The company experienced relatively stable cash conversion cycles from April 2020 to December 2021, ranging from around 39 to 77 days. However, there was a significant increase in the cycle's length towards the end of 2021, with the cycle peaking at 139.18 days in December 2023.

From 2023 to 2024, the company's cash conversion cycle showed some volatility, consistently exceeding 120 days, indicating a prolonged period between investments in resources and the realization of cash from sales.

Although the cycle decreased slightly in the latter part of 2024, the company still faces challenges in efficiently managing its working capital and converting investments into cash. It will be important for Revvity Inc. to assess its inventory turnover, accounts receivable collection, and accounts payable management to streamline its cash conversion cycle and enhance overall operational efficiency.