Revvity Inc. (RVTY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 346,741 | 300,562 | 742,699 | 1,258,460 | 947,111 |
| Long-term debt | US$ in thousands | 3,150,480 | 3,177,770 | 3,923,350 | 4,979,740 | 1,609,700 |
| Total stockholders’ equity | US$ in thousands | 7,666,870 | 7,872,740 | 7,382,880 | 7,141,240 | 3,735,490 |
| Return on total capital | 3.21% | 2.72% | 6.57% | 10.38% | 17.72% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $346,741K ÷ ($3,150,480K + $7,666,870K)
= 3.21%
Based on the provided data, Revvity Inc.'s return on total capital has shown a declining trend over the years.
As of December 31, 2020, the return on total capital was 17.72%, indicating that for every dollar of total capital invested, the company generated a return of 17.72 cents. However, by December 31, 2024, this ratio had decreased to 3.21%, reflecting a significant decline in the company's ability to generate returns on its total capital.
This downward trend suggests that Revvity Inc. may be experiencing challenges in efficiently utilizing its capital to generate profits. A declining return on total capital could indicate issues such as declining profitability, inefficient asset utilization, or increasing financial leverage.
It is essential for Revvity Inc. to closely monitor its return on total capital and identify ways to improve efficiency in capital allocation and utilization to enhance overall financial performance and shareholder value in the future.
Peer comparison
Dec 31, 2024