Novanta Inc (NOVT)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 110,496 | 115,663 | 114,015 | 105,108 | 103,079 | 97,923 | 84,537 | 77,238 | 64,054 | 59,437 | 56,028 | 53,737 | 55,888 | 51,800 | 52,735 | 54,139 | 55,282 | 57,975 | 66,169 | 68,179 |
| Total assets | US$ in thousands | 1,226,060 | 1,194,280 | 1,232,720 | 1,225,820 | 1,241,210 | 1,207,530 | 1,205,840 | 1,206,160 | 1,227,880 | 1,210,240 | 877,945 | 852,254 | 865,179 | 857,534 | 861,027 | 841,968 | 869,736 | 857,960 | 783,373 | 752,660 |
| Operating ROA | 9.01% | 9.68% | 9.25% | 8.57% | 8.30% | 8.11% | 7.01% | 6.40% | 5.22% | 4.91% | 6.38% | 6.31% | 6.46% | 6.04% | 6.12% | 6.43% | 6.36% | 6.76% | 8.45% | 9.06% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $110,496K ÷ $1,226,060K
= 9.01%
Novanta Inc's operating return on assets (operating ROA) has shown a positive trend over the past eight quarters, indicating increasing efficiency in generating operating profits relative to its assets. The operating ROA has ranged from 7.45% to 10.52% during this period. The continuous improvement in operating ROA suggests that Novanta Inc has been effectively utilizing its assets to generate operating income.
In Q4 2023, Novanta Inc's operating ROA was at 10.06%, slightly lower than the previous quarter's 10.52%. This minor decrease may indicate a slight dip in the efficiency of the company's operations in the most recent quarter. However, it is important to note that the operating ROA remains relatively high, reflecting the company's ability to generate profits from its operational activities.
Overall, the upward trend in Novanta Inc's operating ROA demonstrates the company's effectiveness in managing its assets to drive operating profitability. Investors and stakeholders may view this positive performance as a sign of strong operational efficiency and financial health.
Peer comparison
Dec 31, 2023