Novanta Inc (NOVT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 433,648 | 415,297 | 420,519 | 373,825 | 304,173 |
| Total current liabilities | US$ in thousands | 167,791 | 139,175 | 164,522 | 183,938 | 114,229 |
| Current ratio | 2.58 | 2.98 | 2.56 | 2.03 | 2.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $433,648K ÷ $167,791K
= 2.58
Novanta Inc's current ratio has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 2.66, indicating that the company had $2.66 in current assets for every $1 of current liabilities. However, by December 31, 2021, the current ratio decreased to 2.03. This decline may raise some concerns about the company's short-term liquidity position.
The current ratio improved in the following years, reaching 2.56 by December 31, 2022, and further increasing to 2.98 by December 31, 2023. These higher ratios suggest that Novanta Inc had more current assets relative to current liabilities, which could signify a stronger financial position in terms of meeting short-term obligations.
However, by December 31, 2024, the current ratio dropped to 2.58. While still above 2, indicating the company's ability to cover its short-term liabilities, the slight decrease compared to the previous year's ratio may be worth monitoring to ensure that the company maintains sufficient liquidity.
Overall, Novanta Inc's current ratio has generally been above 2 over the past five years, reflecting a healthy liquidity position. However, the fluctuations in the ratio highlight the importance of closely monitoring the company's short-term financial health and managing its current assets and liabilities effectively.
Peer comparison
Dec 31, 2024