Novanta Inc (NOVT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 415,297 | 391,322 | 414,343 | 404,793 | 420,519 | 407,735 | 399,367 | 375,379 | 373,825 | 353,312 | 335,747 | 309,117 | 304,173 | 302,832 | 310,377 | 296,885 | 304,512 | 296,860 | 284,911 | 286,560 |
| 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 |
| Current ratio | 2.98 | 2.83 | 3.05 | 2.84 | 2.56 | 2.58 | 2.01 | 2.05 | 2.03 | 1.88 | 2.65 | 2.63 | 2.66 | 2.27 | 2.40 | 2.19 | 2.26 | 2.38 | 2.89 | 2.83 |
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 shown variability over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
In Q4 2023, the current ratio stood at 2.98, indicating that Novanta Inc had $2.98 in current assets for every $1 in current liabilities. This ratio increased from the previous quarter, reflecting an improvement in the company's liquidity position.
Looking further back, the current ratio fluctuated in the range of 2.01 to 3.05 over the past two years. In general, the company maintained a current ratio above 2, signaling a healthy liquidity position and ability to meet short-term obligations.
It is important to note that while a higher current ratio generally indicates better liquidity, an excessively high ratio may suggest underutilization of assets. Conversely, a low current ratio may indicate potential difficulties in meeting short-term obligations.
Overall, Novanta Inc's current ratio has shown resilience and consistency over the quarters, reflecting a sound financial health and robust liquidity position.
Peer comparison
Dec 31, 2023