Novanta Inc (NOVT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 113,989 | 105,051 | 100,105 | 117,393 | 125,054 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 167,791 | 139,175 | 164,522 | 183,938 | 114,229 |
| Cash ratio | 0.68 | 0.75 | 0.61 | 0.64 | 1.09 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($113,989K
+ $—K)
÷ $167,791K
= 0.68
The cash ratio of Novanta Inc has been declining over the past few years. As of December 31, 2020, the cash ratio stood at 1.09, indicating that the company had $1.09 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.68, suggesting that the company's ability to cover its short-term obligations with cash on hand had weakened.
Although the cash ratio fluctuated during the period, it generally trended downwards, which may raise concerns about the company's liquidity position. A lower cash ratio could indicate that Novanta Inc has become less capable of meeting its immediate financial obligations solely from its available cash reserves. It is essential for investors and stakeholders to closely monitor Novanta Inc's cash management strategies and liquidity position to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024