Novanta Inc (NOVT)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 304,512 | 296,860 | 284,911 | 286,560 |
| Total current liabilities | US$ in thousands | 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 | 134,846 | 124,913 | 98,545 | 101,089 |
| Working capital turnover | 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 | 3.67 | 3.62 | 3.37 | 3.36 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $879,785K ÷ ($415,297K – $139,175K)
= 3.19
Novanta Inc's working capital turnover ratio has shown some fluctuations in recent quarters. In Q4 2023, the working capital turnover was 3.19, declining from 3.51 in Q3 2023. This decrease suggests that the company may have become less efficient in managing its working capital to generate revenue during this period. However, the ratio is still above 3, indicating that Novanta Inc is effectively utilizing its working capital to support its operations.
Comparing to the same period in the previous year, there has been a slight downward trend in the working capital turnover ratio. Q4 2022 and Q1 2023 exhibited the highest ratios at 3.36 and 3.34, respectively. This implies that Novanta Inc was more efficient in converting its working capital into revenue during those periods than in Q4 2023.
Overall, while there have been some fluctuations in Novanta Inc's working capital turnover ratio, the company has generally maintained a healthy level of efficiency in utilizing its working capital to generate revenue. It would be important for stakeholders to continue monitoring this ratio to ensure the company's working capital management remains effective in the future.
Peer comparison
Dec 31, 2023