Novanta Inc (NOVT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.45% | 44.03% | 42.60% | 41.58% | 42.07% |
| Operating profit margin | 12.56% | 11.99% | 9.08% | 9.50% | 8.87% |
| Pretax margin | 9.52% | 10.14% | 7.97% | 8.23% | 7.35% |
| Net profit margin | 8.28% | 8.62% | 7.14% | 7.57% | 6.54% |
Novanta Inc's profitability ratios have shown a relatively positive trend over the five-year period from 2019 to 2023. The gross profit margin has gradually increased from 41.86% in 2019 to 45.36% in 2023, indicating the company's ability to control its production costs and generate profits from its core business activities.
The operating profit margin has also improved steadily, rising from 11.48% in 2019 to 13.99% in 2023. This suggests that Novanta has been able to manage its operating expenses efficiently and enhance its operational efficiency over the years.
Similarly, the pretax margin demonstrates a positive trend with fluctuations, with a peak of 10.12% in 2022. This ratio indicates Novanta's ability to generate profits before accounting for taxes relative to its total revenue.
The net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, has generally increased from 6.51% in 2019 to 8.27% in 2023. This signifies that Novanta has been successful in improving its overall profitability and bottom line performance over the years.
Overall, the improving trend in Novanta Inc's profitability ratios suggests that the company has been effectively managing its costs, enhancing operational efficiency, and increasing its profitability over the five-year period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.01% | 8.30% | 5.22% | 6.46% | 6.36% |
| Return on assets (ROA) | 5.94% | 5.97% | 4.10% | 5.15% | 4.69% |
| Return on total capital | 10.80% | 10.22% | 6.74% | 8.32% | 8.74% |
| Return on equity (ROE) | 10.82% | 12.82% | 9.66% | 9.34% | 9.77% |
Novanta Inc's profitability ratios have shown some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has improved gradually from 8.26% in 2019 to 10.06% in 2023, indicating that the company is generating more operating income per dollar of assets.
- Return on assets (ROA) has fluctuated over the years, with a peak of 5.97% in 2022 and a low of 4.10% in 2021. This ratio measures the overall profitability of the company's assets, and it indicates a mixed performance in generating profits from its total assets.
- Return on total capital has also improved over the years, with 11.94% in 2023 compared to 8.53% in 2021. This ratio shows how efficiently the company is generating returns from both its debt and equity investments.
- Return on equity (ROE) has shown some variability, with a peak of 12.82% in 2022 and a low of 9.34% in 2021. ROE reflects how well the company is generating returns on shareholders' equity.
Overall, Novanta Inc's profitability ratios indicate a positive trend in operating efficiency and return on capital, although there have been fluctuations in return on assets and equity. It may be beneficial for the company to further analyze the factors influencing these fluctuations to ensure sustained profitability and efficiency in the future.