Novanta Inc (NOVT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 78,944 | 61,405 | 66,093 | 74,074 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 139,410 | 143,086 | 144,837 | 141,472 | 137,697 | 144,633 | — | — | 115,617 | — | — | — | 75,054 | — | — | — | — | — | — | — |
| 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 |
| 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 |
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 a generally positive trend over the past eight quarters, reflecting the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio has ranged from 1.24 to 1.91 during this period, with an average of approximately 1.59.
The quick ratio improved steadily from Q1 2022 to Q4 2023, indicating an increasing ability to cover current liabilities with quick assets. This trend suggests that Novanta Inc has managed its liquid assets effectively to meet its current financial obligations.
A quick ratio above 1 indicates that the company's current assets, excluding inventory, are sufficient to cover its current liabilities. Novanta Inc consistently maintaining a quick ratio above 1 indicates a healthy liquidity position and indicates the company's ability to meet its short-term financial obligations without relying heavily on inventory.
Overall, the trend in Novanta Inc's quick ratio signals a strong liquidity position and effective management of its current assets to meet short-term obligations, which is a positive indicator of the company's financial health.
Peer comparison
Dec 31, 2023