Novanta Inc (NOVT)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.29 | 6.31 | 6.24 | 6.10 | 7.84 | |
| DSO | days | 58.04 | 57.84 | 58.47 | 59.85 | 46.58 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.29
= 58.04
Novanta Inc's Days Sales Outstanding (DSO) has exhibited a steady increase over the past five years. As of December 31, 2020, the DSO stood at 46.58 days, indicating a relatively efficient collection period. However, by December 31, 2021, the DSO had risen to 59.85 days, suggesting a lengthening of the average collection period.
Subsequently, there was a slight decrease in DSO to 58.47 days by December 31, 2022, followed by a further decrease to 57.84 days by December 31, 2023. This downward trend implies an improvement in the company's accounts receivable management efficiency. However, by December 31, 2024, the DSO had risen slightly to 58.04 days, indicating a small deterioration compared to the previous year.
Overall, while Novanta Inc's DSO has experienced some fluctuations, the company should continue to monitor and potentially optimize its accounts receivable collection process to maintain a balanced and efficient working capital cycle.
Peer comparison
Dec 31, 2024