Novanta Inc (NOVT)
Working capital 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 |
| Total current assets | US$ in thousands | 415,297 | 420,519 | 373,825 | 304,173 | 304,512 |
| Total current liabilities | US$ in thousands | 139,175 | 164,522 | 183,938 | 114,229 | 134,846 |
| Working capital turnover | 3.19 | 3.36 | 3.71 | 3.10 | 3.67 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $879,785K ÷ ($415,297K – $139,175K)
= 3.19
Novanta Inc's working capital turnover has fluctuated over the past five years. The company's ability to efficiently utilize its working capital to generate sales revenue has shown variations. In 2021, Novanta had the highest working capital turnover of 3.72, indicating that it generated $3.72 in revenue for every dollar of working capital invested. This suggests a strong efficiency in utilizing its working capital during that period.
However, in 2020, the working capital turnover ratio decreased to 3.11, signaling a decrease in the company's ability to convert working capital into sales. The ratios for 2022 and 2019 were relatively consistent at 3.36 and 3.69, respectively.
Overall, while there have been fluctuations, Novanta Inc has generally maintained a reasonable level of working capital turnover efficiency over the five-year period, indicating a consistent ability to generate sales revenue from its working capital investments.
Peer comparison
Dec 31, 2023