Novanta Inc (NOVT)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 113,989 | 92,690 | 98,468 | 93,520 | 105,051 | 75,961 | 91,330 | 82,676 | 100,105 | 84,580 | 100,489 | 98,805 | 117,393 | 102,395 | 133,853 | 113,562 | 125,054 | 106,630 | 97,494 | 73,701 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 151,026 | 164,502 | 145,025 | 150,911 | 139,410 | 143,086 | 144,837 | 141,472 | 137,697 | 144,633 | — | — | 115,617 | — | — | — | 75,054 | — | — | — |
| Total current liabilities | US$ in thousands | 167,791 | 156,600 | 153,470 | 151,406 | 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 |
| Quick ratio | 1.58 | 1.64 | 1.59 | 1.61 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($113,989K
+ $—K
+ $151,026K)
÷ $167,791K
= 1.58
The quick ratio of Novanta Inc has shown fluctuations over the reporting periods. Initially, the quick ratio was below 1, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets. However, there was an improvement in the quick ratio in December 2020 and subsequent quarters, surpassing 1. This signifies that Novanta Inc had an adequate level of liquid assets to cover its current liabilities, suggesting a strengthened liquidity position.
Despite this improvement, there were fluctuations in the quick ratio in the following quarters, with some periods showing values below 1, indicating a potential strain on liquidity. Notably, there was a significant drop in the quick ratio in June 2022 and September 2022, which may have raised concerns about the company's ability to meet its short-term obligations.
In the later periods, the quick ratio improved once again and consistently stayed above 1, suggesting a better ability to cover current liabilities with liquid assets. Overall, the trend in the quick ratio for Novanta Inc reflects variations in the company's liquidity position, with periods of strength and weakness. Vigilant monitoring of the quick ratio is essential to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024