Novanta Inc (NOVT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 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 | 417,172 | 402,877 | 386,182 | 379,701 |
| Debt-to-capital ratio | 0.34 | 0.35 | 0.39 | 0.41 | 0.43 | 0.45 | 0.43 | 0.44 | 0.45 | 0.47 | 0.27 | 0.28 | 0.29 | 0.29 | 0.33 | 0.33 | 0.34 | 0.36 | 0.36 | 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 a downward trend over the past 8 quarters, which indicates an improvement in the company's capital structure. The ratio decreased from 0.43 in Q4 2022 to 0.35 in Q4 2023. This downward trend suggests that Novanta Inc has been reducing its reliance on debt financing in relation to its total capital over this period.
A decreasing debt-to-capital ratio can be a positive signal for investors and creditors as it implies lower financial risk and greater financial stability. It indicates that the company is managing its debt levels effectively and increasing its equity proportion within its capital structure.
Despite the slight fluctuations in the ratio between quarters, the overall decreasing trend from 0.43 in Q4 2022 to 0.35 in Q4 2023 is a positive indicator of Novanta Inc's financial health and prudent financial management. It suggests that the company is on a path towards a stronger financial position with a healthier balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023