Novanta Inc (NOVT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 110,584 | 110,496 | 103,079 | 64,054 | 55,888 |
| Total assets | US$ in thousands | 1,388,510 | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 |
| Operating ROA | 7.96% | 9.01% | 8.30% | 5.22% | 6.46% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $110,584K ÷ $1,388,510K
= 7.96%
Novanta Inc's operating return on assets (operating ROA) has shown fluctuations over the years. It was 6.46% as of December 31, 2020, declining to 5.22% by December 31, 2021. However, there was a notable improvement in the subsequent years, with operating ROA increasing to 8.30% by December 31, 2022, and further to 9.01% by December 31, 2023. In the most recent period, as of December 31, 2024, the operating ROA decreased slightly to 7.96%.
The upward trend in operating ROA from 2021 to 2023 signifies an improvement in Novanta Inc's efficiency in generating operating profits from its assets. It indicates that the company has been utilizing its assets effectively to generate operating income. However, the slight decrease in 2024 suggests a potential need for monitoring efficiency and profitability to sustain or improve returns in the future.
Overall, the varying levels of operating ROA for Novanta Inc reflect changes in the company's operational performance and efficiency over the years, highlighting the importance of continuously assessing and optimizing asset utilization to drive profitability.
Peer comparison
Dec 31, 2024