Novanta Inc (NOVT)

Liquidity ratios

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
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
Quick ratio 1.76 1.58 1.74 1.57 1.45 1.45 0.51 0.54 1.27 0.54 1.06 0.97 1.75 0.80 0.75 0.54 0.59 0.49 0.67 0.73
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

Novanta Inc has demonstrated consistent improvement in its liquidity ratios over the last eight quarters. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has shown an upward trend, increasing from 2.56 in Q4 2022 to 2.98 in Q4 2023. This indicates that Novanta Inc has a strong liquidity position and can easily meet its short-term obligations.

Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, has also shown improvement over the quarters. It has increased from 1.53 in Q4 2022 to 1.91 in Q4 2023, suggesting that Novanta Inc has a healthy level of liquid assets to cover its immediate liabilities.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also displayed a positive trend. It has risen from 0.63 in Q4 2022 to 0.85 in Q4 2023, indicating that Novanta Inc has an increasing ability to cover its short-term obligations solely with cash on hand.

Overall, Novanta Inc's liquidity ratios reflect a strong financial position with improving liquidity over time, which bodes well for the company's ability to meet its financial obligations and pursue future growth opportunities.

Additional liquidity measure

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 conversion cycle days 106.70 106.50 110.94 111.97 108.06 107.36 43.08 39.99 95.44 37.00 29.17 28.08 83.84 44.02 43.18 44.31 44.47 50.46 44.60 40.01

The cash conversion cycle for Novanta Inc has shown fluctuations over the past eight quarters. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash received from sales, has ranged from 118.29 days to 134.64 days during this period.

In the most recent quarter, Q4 2023, the cash conversion cycle was 130.91 days, indicating a moderate increase compared to the previous quarter. This suggests that Novanta Inc may be taking slightly longer to convert its resources into cash receipts from sales.

Overall, the trend in the cash conversion cycle over these eight quarters shows some variability, with some quarters demonstrating longer cycles than others. It is important for Novanta Inc to closely monitor and manage its cash conversion cycle to ensure efficient management of working capital and maximize cash flow efficiency.