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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.
Novanta's Days Sales Outstanding for the
three
months ended in Dec. 2023 was 60.92.
Novanta's Days Inventory for the
three
months ended in Dec. 2023 was 120.27.
Novanta's Days Payable for the
three
months ended in Dec. 2023 was 48.07.
Therefore, Novanta's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2023 was 133.12.
The historical data trend for Novanta's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Novanta Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Cash Conversion Cycle | Get a 7-Day Free Trial | 110.21 | 111.34 | 97.24 | 110.41 | 127.42 |
Novanta Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Cash Conversion Cycle | Get a 7-Day Free Trial | 123.83 | 130.76 | 129.34 | 130.88 | 133.12 |
For the Scientific & Technical Instruments subindustry, Novanta's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Hardware industry and Technology sector, Novanta's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Novanta's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Novanta's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 57.36 | + | 120.22 | - | 50.16 | |
= | 127.42 |
Novanta's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 60.92 | + | 120.27 | - | 48.07 | |
= | 133.12 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Novanta (NAS:NOVT) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Thank you for viewing the detailed overview of Novanta's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.
Robert Buckley | officer: Chief Financial Officer | C/O GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730-1409 |
Matthijs Glastra | officer: Group President,Laser Products | C/O GSI GROUP CORPORATION, 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730 |
Brian S Young | officer: Executive VP, Human Resources | C/O 25 CORPORATE DRIVE, BURLINGTON MA 01803 |
Thomas N Secor | director | GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730 |
Barbara B. Hulit | director | C/O FORTIVE CORPORATION, 6920 SEAWAY BLVD, EVERETT WA 98203 |
Michele Davis Welsh | officer: General Counsel | C/O NOVANTA INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730 |
Solomon Darlene J. S. | director | 6070 PARKLAND BLVD., MAYFIELD HTS. OH 44124 |
Peter L Chang | officer: Vice President-Corp Controller | C/O GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730 |
Frank Anders Wilson | director | C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210 |
Katherine Ann Owen | director | 2825 AIRVIEW BLVD., KALAMAZOO MI 49002 |
Maxine Lum Mauricio | director | 301 MERRITT SEVEN CORPORATE PARK, 6TH FL, C/O EMCOR GROUP INC., NORWALK CT 06851 |
Stephen W Bershad | director | 66 ARROYO HONDO TRAIL, SANTA FE NM 87508 |
Deborah Disanzo | director | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Lonny J Carpenter | director | 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002 |
Brian Douglas King | director | C/O NOVANTA INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730 |
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