Novanta Inc (NOVT)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 215,334 | 227,507 | 214,562 | 198,203 |
| Total assets | US$ in thousands | 1,226,060 | 1,194,280 | 1,232,720 | 1,225,820 | 1,241,210 | 1,207,530 | 1,205,840 | 1,206,160 | 1,227,880 | 1,210,240 | 877,945 | 852,254 | 865,179 | 857,534 | 861,027 | 841,968 | 869,736 | 857,960 | 783,373 | 752,660 |
| Debt-to-assets ratio | 0.28 | 0.29 | 0.33 | 0.34 | 0.35 | 0.36 | 0.33 | 0.34 | 0.35 | 0.37 | 0.21 | 0.22 | 0.23 | 0.22 | 0.25 | 0.25 | 0.25 | 0.27 | 0.27 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $349,404K ÷ $1,226,060K
= 0.28
The debt-to-assets ratio for Novanta Inc has shown a slight decrease over the past four quarters, indicating an improvement in the company's leverage position. As of Q4 2023, the ratio stands at 0.29, which means that only 29% of the company's assets are financed by debt. This suggests that Novanta Inc relies more on equity financing to support its operations and growth.
The downward trend in the debt-to-assets ratio from 0.36 in Q4 2022 to 0.29 in Q4 2023 signals a decrease in the proportion of debt relative to assets, indicating a strengthening of the company's financial health and reduced risk associated with debt obligations. This trend may be attributed to effective debt management strategies, improved profitability, or prudent capital structure decisions by the company.
Overall, the decreasing trend in Novanta Inc's debt-to-assets ratio is a positive indicator of the company's financial stability and ability to meet its financial obligations. Investors and stakeholders may view this trend favorably as it suggests a lower risk of financial distress and a healthier balance sheet position.
Peer comparison
Dec 31, 2023