Novanta Inc (NOVT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 83,748 | 87,159 | 56,172 | 48,403 | 45,766 |
| Revenue | US$ in thousands | 879,785 | 859,523 | 705,061 | 588,129 | 623,033 |
| Pretax margin | 9.52% | 10.14% | 7.97% | 8.23% | 7.35% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $83,748K ÷ $879,785K
= 9.52%
Novanta Inc's pretax margin has fluctuated over the past five years. It decreased from 7.31% in 2019 to 7.95% in 2021 before increasing to 10.12% in 2022. However, in 2023, there was a slight decline to 9.50%. The trend indicates some variability in the company's ability to generate profits before taxes relative to its revenue. Maintaining a stable or increasing pretax margin over time is generally considered favorable, as it suggests efficient cost management and profitability. Further investigation into the factors driving these fluctuations would be necessary to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023