Novanta Inc (NOVT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 415,297 | 420,519 | 373,825 | 304,173 | 304,512 |
| Total current liabilities | US$ in thousands | 139,175 | 164,522 | 183,938 | 114,229 | 134,846 |
| Current ratio | 2.98 | 2.56 | 2.03 | 2.66 | 2.26 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $415,297K ÷ $139,175K
= 2.98
The current ratio of Novanta Inc has exhibited fluctuations over the past five years. In 2023, the current ratio stood at 2.98, showing an increase from the prior year. This indicates that the company has $2.98 in current assets for every $1 of current liabilities, reflecting a stronger liquidity position.
Comparing this to previous years, the company's current ratio has generally been trending upwards since 2021 when it was 2.03. The peak in the current ratio was observed in 2023, suggesting improved short-term financial strength and ability to cover obligations.
Despite some fluctuations, the current ratio has been consistently above 2 over the period under review, signifying that Novanta Inc has maintained a healthy level of current assets relative to current liabilities, which is generally considered favorable for meeting short-term financial obligations.
Overall, the trend in Novanta Inc's current ratio indicates an improvement in liquidity and short-term solvency over the years, providing a positive outlook for the company's financial stability.
Peer comparison
Dec 31, 2023