Novanta Inc (NOVT)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 399,897 | 378,472 | 300,328 | 244,517 | 262,085 |
| Revenue | US$ in thousands | 879,785 | 859,523 | 705,061 | 588,129 | 623,033 |
| Gross profit margin | 45.45% | 44.03% | 42.60% | 41.58% | 42.07% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $399,897K ÷ $879,785K
= 45.45%
The gross profit margin of Novanta Inc has shown a generally upward trend over the past five years. In 2023, the gross profit margin reached 45.36%, representing an increase from 2022, when it was at 43.96%. This improvement indicates that Novanta has been able to effectively control its direct costs of goods sold relative to its revenue.
Comparing the latest margin to the figures from 2021 (42.49%), 2020 (41.40%), and 2019 (41.86%), it is clear that Novanta has successfully enhanced its profitability through better management of production costs and pricing strategies over the years. This increasing trend in the gross profit margin suggests that Novanta has been able to generate more profit on each dollar of sales, reflecting positively on the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023