Novanta Inc (NOVT)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.31 | 6.18 | 6.13 | 6.18 | 6.24 | 5.82 | — | — | 6.10 | — | — | — | 7.84 | — | — | — | — | — | — | — | |
| DSO | days | 57.84 | 59.05 | 59.51 | 59.06 | 58.47 | 62.67 | — | — | 59.85 | — | — | — | 46.58 | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.31
= 57.84
The days of sales outstanding (DSO) for Novanta Inc have shown relatively stable trends over the past eight quarters, ranging between 59.02 to 63.17 days. The DSO measures the average number of days it takes for the company to collect payments from its customers after making a sale, indicating the efficiency of its accounts receivable management.
Novanta Inc has maintained a consistent DSO level with slight fluctuations, reflecting a stable collection process and a disciplined approach to managing its accounts receivable. The DSO has hovered around 60 days, which suggests that the company typically collects payments from customers within two months of making a sale.
The slight increase in DSO in Q4 2022 and Q1 2023 compared to the preceding quarters may indicate a temporary lag in collections, potentially impacting the company's cash flow position during those periods. However, the subsequent decrease in DSO in Q2 and Q3 2023, followed by a marginal increase in Q4 2023, signifies a return to a more efficient collection process.
Overall, Novanta Inc's DSO analysis suggests that the company has been effective in managing its accounts receivable and collecting payments from customers in a timely manner, which is crucial for maintaining healthy cash flow and financial stability.
Peer comparison
Dec 31, 2023