Novanta Inc (NOVT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.34 | 4.74 | 4.16 | 4.77 | 5.39 | |
| DOH | days | 68.29 | 76.99 | 87.74 | 76.58 | 67.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.34
= 68.29
The days of inventory on hand (DOH) for Novanta Inc have shown fluctuations over the past five years. As of December 31, 2020, the company had an inventory turnover rate of 67.73 days, which increased to 76.58 days by December 31, 2021. Subsequently, the DOH rose to 87.74 days by the end of 2022. However, in the following year, by December 31, 2023, the DOH decreased to 76.99 days. Finally, as of December 31, 2024, Novanta Inc managed to further reduce its DOH to 68.29 days.
Analyzing these figures, it can be observed that Novanta Inc has made efforts to optimize its inventory management practices over the years, resulting in a more efficient turnover of inventory. Despite some fluctuations, the general trend indicates a positive direction towards improved inventory turnover, which can lead to better working capital management and overall operational efficiency. It is essential for the company to continue monitoring and adjusting its inventory levels to strike a balance between maintaining optimal stock levels and minimizing carrying costs.
Peer comparison
Dec 31, 2024