Novanta Inc (NOVT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 110,584 | 105,554 | 103,308 | 109,791 | 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 |
| Total assets | US$ in thousands | 1,388,510 | 1,418,820 | 1,398,570 | 1,410,590 | 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 |
| Operating ROA | 7.96% | 7.44% | 7.39% | 7.78% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $110,584K ÷ $1,388,510K
= 7.96%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operational efficiency in generating profits from its assets. Looking at the data provided for Novanta Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the operating ROA over the period.
The trend in Novanta Inc's operating ROA shows some variability, with the ratio ranging from a low of 4.91% on September 30, 2021, to a high of 9.68% on September 30, 2023. The ratio generally shows an upward trajectory from September 30, 2021, to September 30, 2023, indicating improving efficiency in utilizing its assets to generate operating income.
However, the operating ROA dipped slightly to 9.01% on December 31, 2023, and then decreased further to 7.78% on March 31, 2024. While the ratio recovered to 7.96% on December 31, 2024, it is worth noting the fluctuations, which may suggest changes in the company's operational performance or asset base during these periods.
Overall, the increasing trend in Novanta Inc's operating ROA from 2021 to 2023 reflects improvements in operational efficiency and asset utilization. However, the declining trend in the subsequent quarters raises the need for further analysis to understand the factors impacting the company's ability to generate operating income from its assets efficiently.
Peer comparison
Dec 31, 2024