Revvity Inc. (RVTY)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	300,562	360,869	402,421	556,859	742,696	905,124	989,898	1,065,403	1,258,457	1,468,817	1,521,269	1,388,909	978,581	606,575	437,229	353,325	361,973	339,408	340,950	337,279
Total assets	US$ in thousands	13,564,700	13,421,500	14,218,500	14,638,200	14,129,900	13,823,800	14,189,700	14,848,500	15,000,600	14,899,800	8,739,460	8,762,720	7,960,320	6,865,560	6,636,820	6,384,400	6,538,560	6,489,080	6,399,070	6,086,500
Operating ROA		2.22%	2.69%	2.83%	3.80%	5.26%	6.55%	6.98%	7.18%	8.39%	9.86%	17.41%	15.85%	12.29%	8.84%	6.59%	5.53%	5.54%	5.23%	5.33%	5.54%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $300,562K ÷ $13,564,700K
= 2.22%

Revvity Inc.'s operating return on assets (ROA) has shown a declining trend over the past eight quarters. The operating ROA decreased from 7.70% in Q1 2022 to 2.22% in Q4 2023. This indicates a gradual erosion in the company's ability to generate operating income in relation to its total assets.

The decreasing trend in operating ROA could be a cause for concern as it reflects a potential decline in the company's operational efficiency and profitability. Management should investigate the underlying reasons for this decline, such as increasing operating expenses or declining sales margins, to address and reverse this negative trend.

Investors and stakeholders should pay close attention to how Revvity Inc. plans to improve its operating ROA in the future, as a persistent decline in this ratio could signal challenges in the company's ability to generate profits from its assets effectively.