Novanta Inc (NOVT)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 708,151 | 698,874 | 598,934 | 499,762 | 539,875 |
| Inventory | US$ in thousands | 149,371 | 167,997 | 125,657 | 92,737 | 116,618 |
| Inventory turnover | 4.74 | 4.16 | 4.77 | 5.39 | 4.63 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $708,151K ÷ $149,371K
= 4.74
The inventory turnover ratio for Novanta Inc has shown fluctuations over the past five years. In 2023, the inventory turnover ratio improved to 3.23 compared to 2.87 in 2022. This indicates that the company sold and replaced its inventory approximately 3.23 times during the year.
While the inventory turnover ratio decreased in 2022, it was relatively stable in the previous years, showing a slight increase in 2021 compared to 2020, and a decrease in 2020 compared to 2019.
Overall, a higher inventory turnover ratio suggests that the company is efficient in managing its inventory by selling products quickly, which can indicate strong sales and operational efficiency. However, a declining trend in the ratio may suggest inefficiencies in inventory management or potential issues with sales performance. Further analysis of the company's operations and industry benchmarks could provide more context on the performance and efficiency of Novanta Inc's inventory management.
Peer comparison
Dec 31, 2023