Novanta Inc (NOVT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 64,087 | 72,878 | 74,051 | 50,331 | 44,521 |
| Total stockholders’ equity | US$ in thousands | 745,698 | 673,460 | 577,586 | 521,291 | 476,809 |
| ROE | 8.59% | 10.82% | 12.82% | 9.66% | 9.34% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $64,087K ÷ $745,698K
= 8.59%
Novanta Inc's return on equity (ROE) has displayed some fluctuations over the past five years. In 2020, the ROE stood at 9.34%, showing a slight improvement to 9.66% by the end of 2021. The company experienced a significant jump in ROE to 12.82% by December 31, 2022, indicative of enhanced profitability and efficiency in utilizing shareholder equity.
However, in the subsequent years, Novanta Inc's ROE saw some variability. By the end of 2023, the ROE decreased to 10.82% and further dropped to 8.59% by the conclusion of 2024. This declining trend in ROE might indicate challenges in maintaining or improving the company's profitability relative to its equity base.
Overall, while Novanta Inc has demonstrated fluctuations in its ROE over the past five years, the company should focus on strategies to sustain or enhance its return on equity to ensure efficient utilization of shareholder funds and maximize profitability.
Peer comparison
Dec 31, 2024