Novanta Inc (NOVT)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 421,545 | 409,875 | 402,251 | 402,685 | 399,897 | 397,885 | 394,702 | 385,824 | 378,472 | 366,813 | 344,703 | 321,864 | 300,328 | 279,709 | 262,516 | 248,812 | 244,517 | 248,212 | 253,161 | 260,241 |
| Revenue (ttm) | US$ in thousands | 949,660 | 920,609 | 897,471 | 891,340 | 879,785 | 884,432 | 888,334 | 874,295 | 859,523 | 842,387 | 795,095 | 747,026 | 705,060 | 652,770 | 617,780 | 594,757 | 588,129 | 599,132 | 610,790 | 621,523 |
| Gross profit margin | 44.39% | 44.52% | 44.82% | 45.18% | 45.45% | 44.99% | 44.43% | 44.13% | 44.03% | 43.54% | 43.35% | 43.09% | 42.60% | 42.85% | 42.49% | 41.83% | 41.58% | 41.43% | 41.45% | 41.87% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $421,545K ÷ $949,660K
= 44.39%
Novanta Inc's gross profit margin has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The margin started at 41.87% in March 2020 and peaked at 45.45% in December 2023, indicating an improving profitability in the company's core operations. However, there was a slight decline to 44.39% by the end of December 2024.
The gradual increase in gross profit margin could suggest that Novanta has effectively managed its cost of goods sold relative to its revenue during this period. This could be due to various factors, such as better pricing strategies, cost control measures, operational efficiencies, or economies of scale. The slight decrease in the most recent quarter may warrant further investigation to understand any potential operational challenges or shifts in the company's business dynamics that could impact profitability.
Overall, the trend in Novanta Inc's gross profit margin indicates a positive performance in terms of generating profits from its core business activities, but it is important for the company to monitor and address any fluctuations to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2024