Novanta Inc (NOVT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 525,542 | 517,659 | 517,901 | 512,952 |
| Payables | US$ in thousands | 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 | 52,585 | 47,009 | 50,015 | 50,554 |
| Payables turnover | 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 | 9.99 | 11.01 | 10.35 | 10.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $688,486K ÷ $57,195K
= 12.04
Novanta Inc's payables turnover has been on an upward trend over the past eight quarters, indicating an improvement in the company's efficiency in managing its accounts payable. The average payables turnover for the latest four quarters is 7.54, reflecting the number of times Novanta is able to pay off its suppliers within a year. This suggests that the company is paying its suppliers approximately every 48 days, which is a positive sign of liquidity and strong supplier relationships. The consistent increase in payables turnover also implies that Novanta has been able to negotiate better credit terms with suppliers, optimize its working capital management, or improve its payment processing efficiency. Overall, a higher payables turnover ratio indicates that Novanta is effectively managing its payables and operating in a financially sustainable manner.
Peer comparison
Dec 31, 2023