Novanta Inc (NOVT)
Fixed asset 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 |
| Property, plant and equipment | US$ in thousands | 109,449 | 103,323 | 103,801 | 103,967 | 103,186 | 95,030 | 87,924 | 89,652 | 87,439 | 86,279 | 80,164 | 77,535 | 78,676 | 76,115 | 75,276 | 74,780 | 77,556 | 76,122 | 64,630 | 64,754 |
| Fixed asset turnover | 8.04 | 8.56 | 8.56 | 8.41 | 8.33 | 8.86 | 9.04 | 8.33 | 8.06 | 7.57 | 7.71 | 7.67 | 7.48 | 7.87 | 8.11 | 8.31 | 8.03 | 8.17 | 9.73 | 9.64 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $879,785K ÷ $109,449K
= 8.04
Novanta Inc's fixed asset turnover has been relatively stable over the past eight quarters, ranging from a low of 8.06 in Q4 2023 to a high of 9.06 in Q3 2022. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
A fixed asset turnover ratio above 1 indicates that the company is effectively using its fixed assets to generate sales. Novanta's consistently high fixed asset turnover ratios, averaging around 8.5, suggest that the company is efficiently generating revenue from its fixed assets.
The slight fluctuations in the fixed asset turnover ratio over the quarters may be due to changes in sales, investments in fixed assets, or operational efficiency. Overall, the trend indicates that Novanta is effectively managing its fixed assets to generate revenue and is operating efficiently in utilizing its assets.
Peer comparison
Dec 31, 2023