Revvity Inc. (RVTY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 300,562 | 742,699 | 1,258,460 | 947,111 | 300,574 |
| Long-term debt | US$ in thousands | 3,177,770 | 3,923,350 | 4,979,740 | 1,609,700 | 2,064,040 |
| Total stockholders’ equity | US$ in thousands | 7,872,740 | 7,382,880 | 7,141,240 | 3,735,490 | 2,813,820 |
| Return on total capital | 2.72% | 6.57% | 10.38% | 17.72% | 6.16% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $300,562K ÷ ($3,177,770K + $7,872,740K)
= 2.72%
The return on total capital for Revvity Inc. has shown a decreasing trend over the past five years, starting at 8.01% on Dec 29, 2019, and decreasing to 2.55% on Dec 31, 2023. This indicates a decline in the company's ability to generate profits from its total invested capital over the years. The decreasing trend may raise concerns about the company's efficiency in utilizing its capital effectively to generate returns for its investors. Further analysis of the company's financial performance and capital utilization efficiency may be warranted to identify the underlying reasons for this decline and to develop strategies for improvement.
Peer comparison
Dec 31, 2023