Novanta Inc (NOVT)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 949,660 | 920,609 | 897,471 | 891,340 | 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 |
| Total current assets | US$ in thousands | 433,648 | 436,934 | 424,791 | 428,816 | 415,297 | 391,322 | 414,343 | 404,793 | 420,519 | 407,735 | 399,367 | 375,379 | 373,825 | 353,312 | 335,747 | 309,117 | 304,173 | 302,832 | 310,377 | 296,885 |
| Total current liabilities | US$ in thousands | 167,791 | 156,600 | 153,470 | 151,406 | 139,175 | 138,389 | 135,978 | 142,353 | 164,522 | 158,057 | 198,400 | 182,975 | 183,938 | 187,974 | 126,554 | 117,377 | 114,229 | 133,553 | 129,277 | 135,416 |
| Working capital turnover | 3.57 | 3.28 | 3.31 | 3.21 | 3.19 | 3.50 | 3.19 | 3.33 | 3.36 | 3.37 | 3.96 | 3.88 | 3.71 | 3.95 | 2.95 | 3.10 | 3.10 | 3.54 | 3.37 | 3.85 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $949,660K ÷ ($433,648K – $167,791K)
= 3.57
Novanta Inc's working capital turnover ratio has displayed some fluctuation over the past few years. The ratio has ranged between 2.95 and 3.96, with an average of approximately 3.40. This indicates that, on average, the company is able to generate $3.40 in net sales for every dollar of working capital invested.
A higher working capital turnover ratio is generally preferred as it suggests efficient utilization of working capital to generate sales. Novanta Inc's relatively stable ratio around 3.40 indicates a consistent level of efficiency in managing its working capital to drive revenue generation.
However, it is important for Novanta Inc to continuously monitor and manage its working capital turnover ratio to ensure continued efficiency in its operations. Any significant deviations from the historical average should be investigated to maintain a healthy balance between working capital investment and sales generation.
Peer comparison
Dec 31, 2024