Novanta Inc (NOVT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,878 | 74,051 | 50,331 | 44,521 | 40,773 |
| Total assets | US$ in thousands | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 | 869,736 |
| ROA | 5.94% | 5.97% | 4.10% | 5.15% | 4.69% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $72,878K ÷ $1,226,060K
= 5.94%
Novanta Inc's return on assets (ROA) has fluctuated over the last five years, ranging from 4.10% in 2021 to 5.97% in 2022. In 2023, the ROA decreased slightly to 5.94%. This indicates that the company generated approximately 5.94 cents of profit for every dollar of assets it had in 2023.
While the ROA trended upwards from 2019 to 2022, the slight decrease in 2023 suggests a potential decline in the company's ability to generate profits from its assets. It is important to further investigate the reasons behind this fluctuation to determine if it is a temporary anomaly or a more sustained issue that could impact the company's financial performance and overall profitability.
Peer comparison
Dec 31, 2023