Novanta Inc (NOVT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | 411,949 | 452,502 | 477,113 | 508,858 | 349,404 | 347,879 | 403,586 | 418,535 | 430,662 | 438,447 | 402,679 | 412,521 | 429,361 | 441,831 | 186,866 | 186,145 | 194,927 | 188,089 | 211,946 | 206,752 |
| Total stockholders’ equity | US$ in thousands | 745,698 | 742,195 | 701,992 | 681,715 | 673,460 | 644,856 | 626,030 | 598,017 | 577,586 | 542,202 | 532,169 | 534,693 | 521,291 | 500,113 | 493,064 | 476,123 | 476,809 | 451,249 | 431,898 | 413,103 |
| Return on total capital | 9.55% | 8.84% | 8.76% | 9.22% | 10.80% | 11.65% | 11.07% | 10.34% | 10.22% | 9.99% | 9.04% | 8.15% | 6.74% | 6.31% | 8.24% | 8.11% | 8.32% | 8.10% | 8.19% | 8.73% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $110,584K ÷ ($411,949K + $745,698K)
= 9.55%
Novanta Inc's return on total capital has shown fluctuation over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 8.73% in March 2020, decreased slightly to 8.19% in June 2020, and further to 8.10% in September 2020. It then increased to 8.32% by December 2020.
Throughout the following years, the return on total capital exhibited fluctuations, generally staying within a range of 6.31% to 11.65%. Notably, there was a dip in the return in September 2021 to 6.74%, followed by an upward trend to reach 10.22% by December 2022. The return peaked at 11.65% in September 2023 but dropped to 9.22% by March 2024.
Overall, the return on total capital for Novanta Inc has shown variability, with some periods of improvement and others of decline. It will be important for stakeholders to monitor this metric closely to assess the company's efficiency in generating returns from its total capital base.
Peer comparison
Dec 31, 2024