Novanta Inc (NOVT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.21 | 4.77 | 4.45 | 4.34 | 4.61 | 4.49 | 4.28 | 4.17 | 4.06 | 4.17 | 4.21 | 4.40 | 4.66 | 4.49 | 5.39 | 5.49 | 5.26 | 4.96 | 4.80 | 4.68 | |
| DOH | days | 70.00 | 76.58 | 82.02 | 84.01 | 79.19 | 81.25 | 85.27 | 87.61 | 89.80 | 87.43 | 86.63 | 82.90 | 78.25 | 81.21 | 67.69 | 66.47 | 69.42 | 73.62 | 76.07 | 78.05 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.21
= 70.00
The days of inventory on hand (DOH) for Novanta Inc have exhibited some fluctuations over the past few years. The trend shows a general decrease in DOH from around 78 days in March 2020 to a low of about 66 days by March 2021. However, the trend reversed as DOH increased to around 87 days by September 2022, hitting a peak of almost 90 days by December 2022.
Subsequently, there was a slight decrease in DOH to about 79 days by December 2023, followed by fluctuations between 76 and 85 days until June 2024. Overall, the company appears to be maintaining its inventory for approximately 70 to 90 days over the analyzed period.
It is important to monitor the DOH metric closely, as a high number of days indicates slower inventory turnover and potentially ties up capital in excess inventory. Conversely, a low DOH could signify the risk of stockouts or production interruptions. Novanta Inc would benefit from closely managing its inventory levels to optimize working capital efficiency and operational performance.
Peer comparison
Dec 31, 2024