Novanta Inc (NOVT)
Debt-to-equity 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-equity ratio | 0.52 | 0.75 | 0.82 | 0.41 | 0.52 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $349,404K ÷ $673,460K
= 0.52
The debt-to-equity ratio of Novanta Inc has exhibited varying trends over the past five years. As of December 31, 2023, the ratio stands at 0.53, indicating that the company has a lower level of debt relative to its equity. This suggests a healthier financial position with a lower reliance on debt financing.
Comparing this to previous years, we observe fluctuations in the debt-to-equity ratio. In 2022, the ratio increased to 0.76, implying a higher level of debt compared to equity, which could signal increased financial risk. In 2021, the ratio further increased to 0.84, reaching its peak over the past five years, indicating a significant proportion of debt in the capital structure.
Conversely, in 2020, the ratio decreased to 0.45, reflecting a lower reliance on debt financing relative to equity compared to the preceding years. This decrease could signify a strategic shift towards a more conservative financial structure. Furthermore, in 2019, the ratio was at 0.56, showing a moderate level of debt relative to equity, which aligns with a balanced capital structure.
In summary, Novanta Inc's debt-to-equity ratio has experienced fluctuations over the past five years, with the current ratio of 0.53 indicating a relatively low debt burden. It is essential for the company to monitor its debt levels closely to ensure a sustainable financial position and optimal capital structure in the future.
Peer comparison
Dec 31, 2023