Revvity Inc. (RVTY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.07% | 60.08% | 63.59% | 55.78% | 48.41% |
| Operating profit margin | 10.93% | 22.43% | 32.88% | 22.93% | 12.55% |
| Pretax margin | 25.32% | 21.39% | 32.85% | 23.72% | 8.22% |
| Net profit margin | 25.20% | 17.19% | 24.64% | 19.24% | 7.89% |
Revvity Inc.'s profitability ratios show fluctuating trends over the past five years. The gross profit margin has decreased slightly from 60.08% in January 2023 to 55.98% in December 2023, yet remains relatively healthy, indicating the company's ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin has experienced a significant decline, dropping from 22.43% in January 2023 to 10.93% in December 2023. This suggests that the company's operating expenses have increased compared to its operating income.
Similarly, the pretax margin has declined over the years, from 19.68% in January 2023 to 6.65% in December 2023, indicating that the company's profitability before accounting for taxes has decreased.
On a more positive note, the net profit margin has shown an upward trend, increasing from 17.19% in January 2023 to 25.20% in December 2023. This suggests that the company's ability to control costs and expenses has improved, resulting in a higher percentage of revenue translating into net income for shareholders.
Overall, while there are fluctuations in Revvity Inc.'s profitability ratios, the increasing trend in the net profit margin indicates potential improvements in the company's bottom line profitability despite challenges in managing operating expenses.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.22% | 5.26% | 8.39% | 10.89% | 5.54% |
| Return on assets (ROA) | 5.11% | 4.03% | 6.29% | 9.14% | 3.48% |
| Return on total capital | 2.72% | 6.57% | 10.38% | 17.72% | 6.16% |
| Return on equity (ROE) | 8.80% | 7.71% | 13.21% | 19.49% | 8.09% |
Revvity Inc.'s profitability ratios have exhibited fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio indicates how efficiently the company generates operating income relative to its total assets. Revvity Inc.'s Operating ROA has declined consistently from 12.39% in 2021 to 2.22% in 2023. This downward trend suggests that the company's ability to generate profits from its core business operations in relation to its assets has weakened.
2. Return on Assets (ROA): ROA measures the company's overall ability to generate profit from its assets. Revvity Inc.'s ROA has shown variability, with peaks in 2021 (9.14%) and 2023 (5.11%), and troughs in 2022 (4.03%) and 2019 (3.48%). The increase in ROA in 2023 compared to the previous year indicates an improvement in the company's profitability relative to its total assets.
3. Return on Total Capital: This ratio assesses the company's ability to generate returns on all capital invested, including debt and equity. Revvity Inc.'s Return on Total Capital has fluctuated significantly, peaking at 17.23% in 2021 and hitting a low of 2.55% in 2023. The downward trend in recent years suggests a decrease in the company's efficiency in generating returns on its total capital.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. Revvity Inc.'s ROE has ranged from 8.09% in 2019 to 19.49% in 2021. The company experienced a significant decrease in ROE in 2023 to 8.80%, indicating a decline in the profitability of equity investments.
In conclusion, Revvity Inc.'s profitability ratios have shown mixed performance over the past five years, with fluctuations in Operating ROA, ROA, Return on Total Capital, and ROE. Further analysis and comparison with industry benchmarks may be necessary to understand the underlying reasons for these movements and to assess the company's overall financial performance.