Novanta Inc (NOVT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 745,698 | 673,460 | 577,586 | 521,291 | 476,809 |
| Debt-to-equity ratio | 0.55 | 0.52 | 0.75 | 0.82 | 0.41 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $411,949K ÷ $745,698K
= 0.55
The debt-to-equity ratio for Novanta Inc has shown fluctuations over the years. As of December 31, 2020, the ratio stood at 0.41, indicating a conservative level of debt relative to equity. However, by December 31, 2021, the ratio had increased to 0.82, suggesting a significant rise in debt compared to equity.
Subsequently, the ratio decreased to 0.75 by December 31, 2022, indicating a slight improvement in the company's debt management. By December 31, 2023, the ratio dropped further to 0.52, signaling a more balanced mix of debt and equity in the company's capital structure.
As of the latest data available, December 31, 2024, the debt-to-equity ratio stands at 0.55. This suggests that Novanta Inc continues to maintain a relatively moderate level of debt in relation to equity, which may indicate a prudent financial strategy.
Overall, the trend in Novanta Inc's debt-to-equity ratio reflects varying degrees of leverage over the years, with the company appearing to make adjustments to its capital structure to optimize its financial position.
Peer comparison
Dec 31, 2024