Novanta Inc (NOVT)
Fixed asset 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 |
| Property, plant and equipment | US$ in thousands | 113,135 | 119,596 | 114,758 | 113,461 | 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 |
| Fixed asset turnover | 8.39 | 7.70 | 7.82 | 7.86 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $949,660K ÷ $113,135K
= 8.39
Novanta Inc's fixed asset turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. The trend indicates that Novanta Inc's efficiency in generating sales from its fixed assets varied, with the ratio ranging from a high of 9.04 on June 30, 2022, to a low of 7.48 on December 31, 2020.
Overall, Novanta Inc's fixed asset turnover ratio has generally remained above 7.00, indicating that the company has been effectively utilizing its fixed assets to generate revenue. The most recent data point, as of December 31, 2024, shows a fixed asset turnover ratio of 8.39, indicating an improvement in efficiency compared to previous periods. This suggests that Novanta Inc has been able to increase its sales relative to its investment in fixed assets.
It is essential for Novanta Inc to monitor its fixed asset turnover ratio continually to ensure that the company is efficiently utilizing its fixed assets to generate revenue. Fluctuations in this ratio could indicate changes in operational efficiency, changes in sales volume, or changes in the valuation of fixed assets. Comparing these ratios to industry benchmarks can provide additional insights into Novanta Inc's performance in utilizing its fixed assets effectively.
Peer comparison
Dec 31, 2024