Revvity Inc. (RVTY)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	346,741	300,562	742,699	1,258,460	867,273
Total assets	US$ in thousands	12,392,500	13,564,700	14,129,900	15,000,600	7,960,320
Operating ROA		2.80%	2.22%	5.26%	8.39%	10.89%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $346,741K ÷ $12,392,500K
= 2.80%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the profitability of a company's operations relative to its assets. Examining the data provided for Revvity Inc., we observe a declining trend in the operating ROA over the years.

As of December 31, 2020, Revvity Inc. achieved an operating ROA of 10.89%, indicating that for every dollar of assets, the company generated approximately 10.89 cents in operating profit. However, by December 31, 2024, the operating ROA had decreased to 2.80%, reflecting a significant decline in profitability efficiency.

This downward trend suggests that Revvity Inc. may be experiencing challenges in generating operating income relative to its asset base. It is crucial for the company to closely evaluate its operational efficiency, asset utilization, and revenue generation strategies to reverse this declining trend and improve overall profitability.

Overall, the decreasing Operating ROA for Revvity Inc. highlights the importance of effective management of assets and operating performance to enhance profitability and ensure long-term financial sustainability.