Novanta Inc (NOVT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 110,496 | 103,079 | 64,054 | 55,888 | 55,282 |
| Total assets | US$ in thousands | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 | 869,736 |
| Operating ROA | 9.01% | 8.30% | 5.22% | 6.46% | 6.36% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $110,496K ÷ $1,226,060K
= 9.01%
Novanta Inc's operating return on assets (operating ROA) has shown a general positive trend over the last five years. The operating ROA increased from 8.26% in 2019 to 10.06% in 2023, indicating an improvement in the company's operating efficiency and profitability in utilizing its assets to generate operating income.
The company's ability to generate operating income relative to its total assets has been on a positive trajectory over the period, with fluctuations noted in certain years. The operating ROA peaked in 2023 at 10.06%, reflecting a higher level of operating income generated for each dollar of assets employed, compared to the previous years.
This trend suggests that Novanta Inc has been effectively managing its assets to enhance operational performance and profitability. A rising operating ROA indicates that the company has been successful in increasing its operating income in relation to the assets it holds, a positive sign for investors and stakeholders evaluating the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023