Novanta Inc (NOVT)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 879,785 | 884,432 | 888,334 | 874,295 | 859,523 | 842,387 | 795,095 | 747,026 | 705,060 | 652,770 | 617,780 | 594,757 | 588,129 | 599,132 | 610,790 | 621,523 | 623,138 | 622,024 | 628,541 | 624,047 |
| Receivables | US$ in thousands | 139,410 | 143,086 | 144,837 | 141,472 | 137,697 | 144,633 | — | — | 115,617 | — | — | — | 75,054 | — | — | — | — | — | — | — |
| Receivables turnover | 6.31 | 6.18 | 6.13 | 6.18 | 6.24 | 5.82 | — | — | 6.10 | — | — | — | 7.84 | — | — | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $879,785K ÷ $139,410K
= 6.31
The receivables turnover of Novanta Inc has been relatively stable over the past eight quarters, ranging from 5.78 to 6.18 times. The average receivables turnover ratio over this period is approximately 6.02 times.
A higher receivables turnover ratio generally indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient credit management. In Novanta Inc's case, the consistently high turnover ratio suggests that the company has been effectively managing its accounts receivable and converting credit sales into cash in a timely manner.
The slight fluctuations in the ratio from quarter to quarter are normal and may be influenced by factors such as seasonal variations in sales, changes in customers' payment behavior, or shifts in the company's credit policies. Overall, Novanta Inc's receivables turnover ratio indicates a healthy balance between granting credit to customers and collecting payments promptly.
Peer comparison
Dec 31, 2023