Novanta Inc (NOVT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 879,785 | 859,523 | 705,061 | 588,129 | 623,033 |
| Receivables | US$ in thousands | 139,410 | 137,697 | 115,617 | 75,054 | 91,078 |
| Receivables turnover | 6.31 | 6.24 | 6.10 | 7.84 | 6.84 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $879,785K ÷ $139,410K
= 6.31
The receivables turnover ratio for Novanta Inc has been fluctuating over the past five years. In 2023, the ratio was 5.98, which indicates that the company collected its accounts receivable approximately 5.98 times during the year. Compared to the previous year, the turnover decreased slightly from 6.18 to 5.98.
Analyzing further, we observe that in 2021 and 2019, the receivables turnover ratios were 6.01 and 6.46, respectively. Notably, in 2020, the company experienced a significantly higher turnover ratio of 7.55, indicating a more efficient collection of accounts receivable compared to other years.
Overall, the trend in Novanta Inc's receivables turnover ratios shows some variability, potentially indicating fluctuations in the company's credit policies, customer payment behavior, or sales volume. It is essential for the company to monitor and manage its receivables effectively to maintain a healthy balance between liquidity and sales efficiency.
Peer comparison
Dec 31, 2023