Novanta Inc (NOVT)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 411,949 | 349,404 | 430,662 | 429,361 | 194,927 |
| Total assets | US$ in thousands | 1,388,510 | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 |
| Debt-to-assets ratio | 0.30 | 0.28 | 0.35 | 0.35 | 0.23 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $411,949K ÷ $1,388,510K
= 0.30
The debt-to-assets ratio of Novanta Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the ratio stood at 0.23, indicating that only 23% of the company's assets were financed by debt. However, by the end of December 31, 2021, the ratio had increased to 0.35, suggesting that 35% of the assets were funded through debt, reflecting a higher reliance on borrowed funds.
The ratio remained constant at 0.35 for the next year, highlighting a consistent level of debt financing relative to total assets. Subsequently, by the end of December 31, 2023, the ratio decreased to 0.28, indicating a slight reduction in the proportion of assets funded by debt. Lastly, as of December 31, 2024, the ratio increased slightly to 0.30, signaling a moderate uptick in debt financing compared to the previous year.
Overall, Novanta Inc's debt-to-assets ratio has shown variability over the years, with periods of both increase and decrease. The company's management should continue monitoring this ratio to ensure a balanced capital structure that supports sustainable growth and financial stability.
Peer comparison
Dec 31, 2024