Novanta Inc (NOVT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 949,722 | 879,785 | 859,523 | 705,061 | 588,129 |
| Total assets | US$ in thousands | 1,388,510 | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 |
| Total asset turnover | 0.68 | 0.72 | 0.69 | 0.57 | 0.68 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $949,722K ÷ $1,388,510K
= 0.68
Novanta Inc's total asset turnover has shown some fluctuations over the past five years. In 2020, the total asset turnover was 0.68, indicating that the company generated $0.68 in sales for every $1 of total assets. This ratio decreased to 0.57 in 2021, suggesting a decline in sales efficiency. However, in 2022, the total asset turnover improved to 0.69 and further increased to 0.72 in 2023, indicating a more effective utilization of assets to generate revenue. By the end of 2024, the total asset turnover reverted back to 0.68, similar to the level observed in 2020.
Overall, Novanta Inc's total asset turnover has exhibited variability, but the recent trend shows an improvement in asset utilization efficiency, with the company generating more sales per dollar of total assets in 2023. It is essential for the company to maintain or enhance this trend to ensure optimal performance and profitability.
Peer comparison
Dec 31, 2024