Revvity Inc. (RVTY)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.28 | 0.33 | 0.20 | 0.32 |
| Debt-to-capital ratio | 0.29 | 0.35 | 0.41 | 0.30 | 0.42 |
| Debt-to-equity ratio | 0.40 | 0.53 | 0.70 | 0.43 | 0.73 |
| Financial leverage ratio | 1.72 | 1.91 | 2.10 | 2.13 | 2.32 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Let's analyze the solvency ratios of Revvity Inc. over the past five years based on the provided data.
1. Debt-to-assets ratio:
Revvity Inc.'s debt-to-assets ratio has shown a decreasing trend from 0.32 in 2019 to 0.29 in 2023. This indicates that the company's level of debt in relation to its total assets has been decreasing over the years, which may imply improved financial stability and lower risk of insolvency.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio has also exhibited a declining pattern, falling from 0.42 in 2019 to 0.33 in 2023. A decreasing trend in this ratio suggests that the company is relying less on debt financing relative to its total capital structure, which could signify enhanced solvency and reduced financial leverage.
3. Debt-to-equity ratio:
Revvity Inc.'s debt-to-equity ratio has fluctuated over the years, with a peak of 0.74 in 2019 and a decline to 0.50 in 2023. Although there have been fluctuations, the decreasing trend in recent years indicates that the company is relying less on debt capital compared to equity, which can positively impact its financial health and ability to cover obligations.
4. Financial leverage ratio:
The financial leverage ratio, which measures the company's reliance on debt, has decreased from 2.32 in 2019 to 1.72 in 2023. A decreasing financial leverage ratio suggests that Revvity Inc. has reduced its dependency on debt financing, highlighting a potentially stronger financial position and lower risk of default.
Overall, the declining trends in the debt-to-assets, debt-to-capital, debt-to-equity ratios, and financial leverage ratio indicate an improving solvency position for Revvity Inc. over the past five years. Lower ratios suggest a decreasing reliance on debt and a healthier balance between debt and equity in the company's capital structure, which may enhance its ability to meet long-term financial obligations and withstand economic downturns.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.04 | 7.14 | 12.32 | 19.05 | 4.72 |
The interest coverage ratio for Revvity Inc. has fluctuated over the past five years. In 2023, the interest coverage ratio was 11.26, indicating the company generated 11.26 times the amount of earnings necessary to cover its interest expense. This is an improvement compared to 2022 when the ratio was 7.40.
Looking back to 2021, Revvity Inc. had a high interest coverage ratio of 20.26, suggesting a healthy ability to meet its interest obligations with its earnings. In contrast, the ratio was lower in 2019 at 6.30, indicating a decrease in the company's ability to cover its interest payments compared to the most recent year.
Overall, the trend in interest coverage ratios for Revvity Inc. shows fluctuations, with the company experiencing both improvements and declines in its ability to cover its interest expenses over the past five years. It would be important for stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations effectively.