Novanta Inc (NOVT)
Fixed asset 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 |
| Property, plant and equipment | US$ in thousands | 109,449 | 103,186 | 87,439 | 78,676 | 77,556 |
| Fixed asset turnover | 8.04 | 8.33 | 8.06 | 7.48 | 8.03 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $879,785K ÷ $109,449K
= 8.04
Novanta Inc's fixed asset turnover ratio has been relatively stable over the past five years, ranging between 7.51 and 8.34. The ratio indicates that the company generates approximately 8 times in net sales revenue for every dollar invested in fixed assets. This consistency suggests that Novanta efficiently utilizes its fixed assets to generate sales revenue. A high fixed asset turnover ratio like that of Novanta indicates strong operational efficiency and effective asset management, leading to increased profitability. Overall, Novanta's performance in terms of fixed asset turnover has been commendable, showcasing a systematic and efficient use of its fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023