Novanta Inc (NOVT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.39% | 45.45% | 44.03% | 42.60% | 41.58% |
| Operating profit margin | 11.64% | 12.56% | 11.99% | 9.08% | 9.50% |
| Pretax margin | 8.33% | 9.52% | 10.14% | 7.97% | 8.23% |
| Net profit margin | 6.75% | 8.28% | 8.62% | 7.14% | 7.57% |
Novanta Inc's profitability ratios have shown a positive trend over the past five years.
- The Gross Profit Margin has increased from 41.58% in 2020 to 44.39% in 2024, indicating that the company has been able to improve its efficiency in generating profit from sales after deducting the cost of goods sold.
- The Operating Profit Margin has fluctuated slightly but generally increased from 9.50% in 2020 to 11.64% in 2024, suggesting that Novanta Inc has been able to manage its operating expenses effectively to improve its profitability.
- The Pretax Margin has seen some variation but has shown an overall increase from 8.23% in 2020 to 8.33% in 2024, indicating the company's ability to generate profits before accounting for taxes has been relatively stable.
- The Net Profit Margin, however, has decreased from 7.57% in 2020 to 6.75% in 2024. This decline suggests that although Novanta Inc has been profitable, its bottom line profit relative to sales has slightly decreased over the period.
Overall, Novanta Inc has demonstrated improvements in its profitability ratios, showing efficient cost management and operational performance. However, the decrease in net profit margin in the most recent year may warrant further analysis to understand the underlying factors impacting profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.96% | 9.01% | 8.30% | 5.22% | 6.46% |
| Return on assets (ROA) | 4.62% | 5.94% | 5.97% | 4.10% | 5.15% |
| Return on total capital | 9.55% | 10.80% | 10.22% | 6.74% | 8.32% |
| Return on equity (ROE) | 8.59% | 10.82% | 12.82% | 9.66% | 9.34% |
Novanta Inc's profitability ratios exhibit fluctuating trends over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA): This ratio shows the company's operating income generated per dollar of assets. Novanta Inc's Operating ROA decreased from 6.46% in 2020 to 5.22% in 2021 before recovering and increasing to 8.30% in 2022. It further improved to 9.01% in 2023, but slightly declined to 7.96% in 2024.
2. Return on Assets (ROA): ROA indicates the company's overall efficiency in generating profit from its assets. Novanta Inc's ROA decreased from 5.15% in 2020 to 4.10% in 2021, then increased to 5.97% in 2022. However, it remained relatively stable around 5.94% in 2023 and 4.62% in 2024.
3. Return on Total Capital: This ratio measures the return generated from all sources of capital. Novanta Inc's Return on Total Capital fluctuated, starting at 8.32% in 2020, declining to 6.74% in 2021, then increasing to 10.22% in 2022. It continued to rise to 10.80% in 2023, before decreasing slightly to 9.55% in 2024.
4. Return on Equity (ROE): ROE represents the return generated for the shareholders' equity invested. Novanta Inc's ROE varied over the period, with values of 9.34% in 2020, 9.66% in 2021, 12.82% in 2022, 10.82% in 2023, and 8.59% in 2024.
Overall, Novanta Inc's profitability ratios demonstrate both positive and negative trends with fluctuations in performance over the five-year period, indicating varying levels of operational efficiency and return generation for investors and capital providers.