Novanta Inc (NOVT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 673,460 | 577,586 | 521,291 | 476,809 | 417,172 |
| Debt-to-capital ratio | 0.34 | 0.43 | 0.45 | 0.29 | 0.34 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $349,404K ÷ ($349,404K + $673,460K)
= 0.34
The debt-to-capital ratio of Novanta Inc has shown fluctuating trends over the past five years. In 2023, the ratio decreased to 0.35 from 0.43 in 2022, indicating a reduction in the proportion of debt relative to total capital. This might suggest a decrease in financial risk and leverage, potentially improving the company's financial stability.
Comparing the 2023 ratio to the figures for 2021, 2020, and 2019, it can be observed that the ratio has fluctuated within a range, with 2021 showing the highest at 0.46 and 2020 being the lowest at 0.31. These fluctuations indicate possible changes in the company's capital structure and debt management strategies over the years.
Overall, the decreasing trend in the debt-to-capital ratio from 2022 to 2023 could be seen as a positive signal, potentially reflecting improved financial health and a more conservative approach to financing within Novanta Inc. Further analysis of the company's debt levels and capital structure dynamics would be necessary to fully assess the impact of these changes on its overall financial position.
Peer comparison
Dec 31, 2023