Novanta Inc (NOVT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 105,051 | 100,105 | 117,393 | 125,054 | 78,944 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 139,175 | 164,522 | 183,938 | 114,229 | 134,846 |
| Cash ratio | 0.75 | 0.61 | 0.64 | 1.09 | 0.59 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($105,051K
+ $—K)
÷ $139,175K
= 0.75
The cash ratio of Novanta Inc has exhibited fluctuations over the past five years. In 2023, the cash ratio stands at 0.85, indicating that the company has $0.85 of cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year (0.69).
In 2022 and 2021, the cash ratio was 0.69 and 0.71 respectively, suggesting that the company had slightly less liquidity to cover its short-term obligations during those years.
The highest cash ratio in the last five years was recorded in 2020 at 1.17, signifying that Novanta Inc had more than enough cash to meet its immediate liabilities at that time.
On the other hand, the cash ratio was the lowest in 2019 at 0.67, implying that the company had relatively lower liquidity to address its short-term financial obligations compared to the other years in the given period.
Overall, while the cash ratio has fluctuated over the years, it is important for Novanta Inc to ensure that it maintains a healthy level of liquidity to meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023