Novanta Inc (NOVT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 110,584 | 110,496 | 103,079 | 64,054 | 55,888 |
| Long-term debt | US$ in thousands | 411,949 | 349,404 | 430,662 | 429,361 | 194,927 |
| Total stockholders’ equity | US$ in thousands | 745,698 | 673,460 | 577,586 | 521,291 | 476,809 |
| Return on total capital | 9.55% | 10.80% | 10.22% | 6.74% | 8.32% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $110,584K ÷ ($411,949K + $745,698K)
= 9.55%
Novanta Inc's return on total capital has shown some variability over the years. In 2020, the return on total capital was 8.32%, which decreased to 6.74% by the end of 2021. However, there was a significant improvement in 2022, with the return on total capital rising to 10.22%. This positive trend continued in 2023 and 2024, with further increases to 10.80% and 9.55%, respectively.
Overall, the fluctuation in Novanta Inc's return on total capital indicates that the company's efficiency in generating profits from its total capital has been mixed. It is important to continue monitoring this ratio to assess the company's performance and financial health accurately.
Peer comparison
Dec 31, 2024