Novanta Inc (NOVT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 753,999 | 734,081 | 712,244 | 701,100 | 688,486 | 690,954 | 697,284 | 694,400 | 682,856 | 679,677 | 648,402 | 612,748 | 586,095 | 536,752 | 512,116 | 493,889 | 487,572 | 504,420 | 515,225 | 523,784 |
| Payables | US$ in thousands | 76,890 | 68,720 | 71,044 | 71,401 | 57,195 | 63,983 | 64,653 | 66,009 | 75,225 | 79,577 | 77,351 | 72,035 | 68,514 | 65,012 | 54,053 | 51,952 | 42,966 | 40,906 | 46,427 | 48,419 |
| Payables turnover | 9.81 | 10.68 | 10.03 | 9.82 | 12.04 | 10.80 | 10.79 | 10.52 | 9.08 | 8.54 | 8.38 | 8.51 | 8.55 | 8.26 | 9.47 | 9.51 | 11.35 | 12.33 | 11.10 | 10.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $753,999K ÷ $76,890K
= 9.81
Novanta Inc's payables turnover has shown some fluctuation over the past few years. The payables turnover ratios have ranged from a low of 8.26 in September 2021 to a high of 12.04 in December 2023. This ratio measures how quickly the company is able to pay off its suppliers and is an indication of the efficiency of its accounts payable management.
A higher payables turnover ratio indicates that the company is able to pay off its suppliers more quickly, which can be a sign of strong liquidity and effective working capital management. Conversely, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could indicate potential financial difficulties or inefficiencies in managing accounts payable.
Overall, based on the data provided, Novanta Inc's payables turnover ratio has shown some variability but has generally remained within a range that indicates reasonable efficiency in managing its payables. Monitoring this ratio over time can help assess the company's financial health and management of working capital.
Peer comparison
Dec 31, 2024