Novanta Inc (NOVT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 772,915 | 708,151 | 698,874 | 598,934 | 499,762 |
| Payables | US$ in thousands | 76,890 | 57,195 | 75,225 | 68,514 | 42,966 |
| Payables turnover | 10.05 | 12.38 | 9.29 | 8.74 | 11.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $772,915K ÷ $76,890K
= 10.05
Novanta Inc's payables turnover ratio has shown some fluctuations over the years based on the provided data. The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher ratio generally indicates that the company is paying its suppliers more frequently.
In December 31, 2020, the payables turnover ratio was 11.63, which suggests that Novanta Inc was paying its suppliers approximately 11.63 times during that year. This high ratio could indicate that the company has strong liquidity and is effectively managing its cash flow.
However, in the following years, the payables turnover ratio decreased. By December 31, 2021, the ratio had dropped to 8.74, indicating that Novanta Inc was paying its suppliers less frequently compared to the previous year. This could suggest changes in the company's payment policies or possibly difficulties in managing its payables efficiently.
In December 31, 2022, the payables turnover ratio slightly increased to 9.29, showing some improvement in managing accounts payable. By December 31, 2023, the ratio had further improved to 12.38, indicating that Novanta Inc had increased its payment frequency to suppliers significantly.
By December 31, 2024, the payables turnover ratio was at 10.05, showing a slight decrease from the previous year but still at a relatively healthy level. Overall, the trend in Novanta Inc's payables turnover ratio reflects fluctuations in the company's accounts payable management, with some years showing improvements in efficiency and others demonstrating a decrease in payment frequency to suppliers.
Peer comparison
Dec 31, 2024