Novanta Inc (NOVT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.31 | 6.24 | 6.10 | 7.84 | 6.84 | |
| DSO | days | 57.84 | 58.47 | 59.85 | 46.58 | 53.36 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.31
= 57.84
Novanta Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its customers after making a sale.
Over the past five years, Novanta Inc's DSO has shown some fluctuation. In 2023, the company's DSO was 61.07 days, slightly higher than the previous year's 59.02 days. This indicates that, on average, it took the company slightly longer to collect revenue from customers in 2023.
Comparing to earlier years, Novanta Inc's DSO was relatively higher in 2023 compared to 2020 when it was 48.36 days, suggesting that the company might be facing challenges in managing its receivables efficiently.
However, it's important to note that DSO can be influenced by various factors such as the company's credit policies, industry norms, and economic conditions. Thus, further analysis is required to determine the underlying reasons for the change in Novanta Inc's DSO over the years and to assess its impact on the company's financial performance and liquidity.
Peer comparison
Dec 31, 2023