Novanta Inc (NOVT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 105,051 | 100,105 | 117,393 | 125,054 | 78,944 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 139,410 | 137,697 | 115,617 | 75,054 | 91,078 |
| Total current liabilities | US$ in thousands | 139,175 | 164,522 | 183,938 | 114,229 | 134,846 |
| Quick ratio | 1.76 | 1.45 | 1.27 | 1.75 | 1.26 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($105,051K
+ $—K
+ $139,410K)
÷ $139,175K
= 1.76
The quick ratio of Novanta Inc has shown fluctuations over the past five years. The ratio ranged from a low of 1.35 in 2021 to a high of 1.91 in 2023. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.
The upward trend in the quick ratio from 2020 to 2023 suggests an improvement in Novanta Inc's ability to meet its short-term financial obligations without relying heavily on inventory. This could indicate efficient management of current assets and liabilities.
However, the slight decrease in the quick ratio in 2022 compared to 2023 may warrant further analysis to determine the factors contributing to this change. It is important for Novanta Inc to maintain a healthy quick ratio to ensure financial stability and liquidity in the short term.
Peer comparison
Dec 31, 2023