Novanta Inc (NOVT)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 949,722 | 879,785 | 859,523 | 705,061 | 588,129 |
| Receivables | US$ in thousands | 151,026 | 139,410 | 137,697 | 115,617 | 75,054 |
| Receivables turnover | 6.29 | 6.31 | 6.24 | 6.10 | 7.84 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $949,722K ÷ $151,026K
= 6.29
Novanta Inc's receivables turnover ratio has shown a slight decrease from 7.84 in December 31, 2020, to 6.29 in December 31, 2024. This indicates that the company is collecting its accounts receivable slightly less efficiently over the years. A high receivables turnover ratio suggests that Novanta is effectively managing its credit policies and collecting outstanding debts promptly. However, the decreasing trend in the ratio may raise concerns about the company's collection efforts and the creditworthiness of its customers. It is crucial for Novanta to closely monitor its accounts receivable management to ensure timely collections and overall financial health.
Peer comparison
Dec 31, 2024