Novanta Inc (NOVT)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 105,051 | 75,961 | 91,330 | 82,676 | 100,105 | 84,580 | 100,489 | 98,805 | 117,393 | 102,395 | 133,853 | 113,562 | 125,054 | 106,630 | 97,494 | 73,701 | 78,944 | 61,405 | 66,093 | 74,074 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 139,175 | 138,389 | 135,978 | 142,353 | 164,522 | 158,057 | 198,400 | 182,975 | 183,938 | 187,974 | 126,554 | 117,377 | 114,229 | 133,553 | 129,277 | 135,416 | 134,846 | 124,913 | 98,545 | 101,089 |
| Cash ratio | 0.75 | 0.55 | 0.67 | 0.58 | 0.61 | 0.54 | 0.51 | 0.54 | 0.64 | 0.54 | 1.06 | 0.97 | 1.09 | 0.80 | 0.75 | 0.54 | 0.59 | 0.49 | 0.67 | 0.73 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($105,051K
+ $—K)
÷ $139,175K
= 0.75
Novanta Inc's cash ratio has shown some fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q4 2023, Novanta Inc has a cash ratio of 0.85, indicating that it had $0.85 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous quarter and is the highest cash ratio observed in the provided data.
The trend of the cash ratio over the past eight quarters shows variability, with some quarters showing higher ratios (such as Q4 2023) and others showing lower ratios (like Q2 2022). Overall, the company's cash ratio seems to have been relatively stable, ranging from 0.58 to 0.85.
A higher cash ratio is generally considered favorable as it suggests that the company has a strong liquidity position and can readily meet its short-term obligations. However, it's essential to consider other factors such as the industry norms and the company's specific circumstances when interpreting the cash ratio in isolation.
Further analysis would be required to understand the underlying reasons behind the fluctuations in Novanta Inc's cash ratio and to assess the overall financial health of the company.
Peer comparison
Dec 31, 2023