Novanta Inc (NOVT)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.29 | 5.60 | 6.19 | 5.91 | 6.31 | 6.18 | 6.13 | 6.18 | 6.24 | 5.82 | — | — | 6.10 | — | — | — | 7.84 | — | — | — | |
| DSO | days | 58.05 | 65.22 | 58.98 | 61.80 | 57.84 | 59.05 | 59.51 | 59.06 | 58.47 | 62.67 | — | — | 59.85 | — | — | — | 46.58 | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.29
= 58.05
Days of Sales Outstanding (DSO) is a ratio that indicates the average number of days it takes for a company to collect payment after making a sale. Looking at the DSO trend for Novanta Inc over the past few years:
- In December 2020, the DSO was 46.58 days, indicating that on average, it took the company approximately 46 days to collect payment from its customers.
- The DSO increased to 59.85 days by December 2021, suggesting a lengthening of the collection period.
- Subsequently, the DSO fluctuated around the high 50s to low 60s range between September 2022 and June 2024, with values ranging from 57.84 to 65.22 days.
- The company experienced a slight decrease in DSO to 58.05 days by December 2024.
Overall, the trend in Novanta Inc's DSO shows some variability in the collection period over the years, with some fluctuations but no clear directional trend. It is important for the company to manage its accounts receivable effectively to ensure timely collection of payments and efficient working capital management.
Peer comparison
Dec 31, 2024