Novanta Inc (NOVT)
Total 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 |
| Total assets | US$ in thousands | 1,388,510 | 1,418,820 | 1,398,570 | 1,410,590 | 1,226,060 | 1,194,280 | 1,232,720 | 1,225,820 | 1,241,210 | 1,207,530 | 1,205,840 | 1,206,160 | 1,227,880 | 1,210,240 | 877,945 | 852,254 | 865,179 | 857,534 | 861,027 | 841,968 |
| Total asset turnover | 0.68 | 0.65 | 0.64 | 0.63 | 0.72 | 0.74 | 0.72 | 0.71 | 0.69 | 0.70 | 0.66 | 0.62 | 0.57 | 0.54 | 0.70 | 0.70 | 0.68 | 0.70 | 0.71 | 0.74 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $949,660K ÷ $1,388,510K
= 0.68
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Novanta Inc's total asset turnover has shown fluctuation over the years, ranging from 0.54 to 0.74.
The trend indicates a slight decrease in total asset turnover from 0.74 as of March 31, 2020, to 0.68 as of December 31, 2024, with some fluctuations in between. This suggests that Novanta Inc may be becoming less efficient in generating sales from its total assets.
However, it is worth noting that the ratio has shown some resilience, remaining relatively stable around the 0.70 mark in recent quarters. This stability may indicate that Novanta Inc has managed to maintain its efficiency in utilizing its assets to generate sales revenue during this period.
In conclusion, while Novanta Inc's total asset turnover has exhibited some variability, the company has been able to sustain a moderate level of efficiency in converting its total assets into sales revenue, except for a slight decline in recent periods. It would be beneficial for the company to closely monitor and potentially improve this ratio to ensure optimal asset utilization in the future.
Peer comparison
Dec 31, 2024