Novanta Inc (NOVT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 349,404 | 430,662 | 429,361 | 194,927 | 215,334 |
| Total assets | US$ in thousands | 1,226,060 | 1,241,210 | 1,227,880 | 865,179 | 869,736 |
| Debt-to-assets ratio | 0.28 | 0.35 | 0.35 | 0.23 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $349,404K ÷ $1,226,060K
= 0.28
Novanta Inc's debt-to-assets ratio has fluctuated over the past five years, ranging from 0.25 to 0.36. A lower debt-to-assets ratio indicates that the company relies less on debt financing to fund its operations and investments, which can be seen favorably by investors and creditors as it signifies lower financial risk.
In 2023, the debt-to-assets ratio decreased to 0.29 from 0.36 in 2022 and 0.36 in 2021, showing a positive trend towards a lower reliance on debt. This may indicate that Novanta Inc is managing its debt levels effectively or has been able to increase its asset base without significantly increasing its debt obligations.
Comparing the debt-to-assets ratio to previous years, the 2023 ratio of 0.29 falls closer to the lower end of the range seen in the past five years. This could suggest that Novanta Inc's financial position has improved in terms of its debt management and asset utilization.
Overall, Novanta Inc's decreasing debt-to-assets ratio indicates a potentially healthier financial position in 2023 compared to previous years, as the company appears to be managing its debt levels more efficiently and maintaining a stronger asset base relative to its debt obligations.
Peer comparison
Dec 31, 2023