Revvity Inc. (RVTY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.23 | 0.28 | 0.33 | 0.20 |
| Debt-to-capital ratio | 0.29 | 0.29 | 0.35 | 0.41 | 0.30 |
| Debt-to-equity ratio | 0.41 | 0.40 | 0.53 | 0.70 | 0.43 |
| Financial leverage ratio | 1.62 | 1.72 | 1.91 | 2.10 | 2.13 |
Revvity Inc.'s solvency ratios reflect its ability to meet its long-term financial obligations. The Debt-to-assets ratio indicates that the company had a relatively stable debt level compared to its total assets over the period, ranging from 20% to 33%. This implies that a significant portion of the company's assets is financed by debt.
The Debt-to-capital ratio also shows a consistent trend, fluctuating between 29% and 41%. This ratio reveals the proportion of the company's capital structure funded by debt, indicating a moderate level of leverage.
Moving on to the Debt-to-equity ratio, we see fluctuations from 40% to 70% over the period. This ratio signifies the relative contribution of creditors and shareholders to the company's capital structure. Revvity Inc. seems to have a significant reliance on debt financing in relation to equity.
Analyzing the Financial leverage ratio, we notice a declining trend from 2.13 to 1.62, suggesting that the company has been reducing its reliance on debt to finance its operations. This ratio measures the extent to which the company's operations are funded by debt, with a decreasing trend indicating improved financial stability.
Overall, while Revvity Inc. maintains a moderate level of debt in its capital structure, the decreasing trend in the Financial leverage ratio signifies a positive development in terms of reducing debt reliance over time, which may enhance the company's solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.60 | 3.04 | 7.14 | 12.32 | 19.05 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on its outstanding debt. A higher interest coverage ratio is generally preferred as it signifies that the company is more capable of covering its interest expenses.
For Revvity Inc., the interest coverage ratio has been gradually decreasing over the years. As of December 31, 2020, the interest coverage ratio was 19.05, indicating a strong ability to cover interest expenses. However, by December 31, 2024, the ratio declined to 3.60, which suggests a decrease in the company's ability to meet its interest obligations comfortably.
The declining trend in the interest coverage ratio for Revvity Inc. raises concerns about the company's financial health and its ability to generate sufficient earnings to cover its interest expenses. It is essential for stakeholders to monitor this ratio closely to assess the company's risk of defaulting on its debt payments and its overall financial stability.