Novanta Inc (NOVT)
Debt-to-equity 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-equity ratio | 0.52 | 0.54 | 0.64 | 0.70 | 0.75 | 0.81 | 0.76 | 0.77 | 0.82 | 0.88 | 0.38 | 0.39 | 0.41 | 0.42 | 0.49 | 0.50 | 0.52 | 0.56 | 0.56 | 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 shown a fluctuating trend over the past eight quarters. The ratio has ranged from 0.53 to 0.83 during this period.
In the most recent quarter (Q4 2023), the debt-to-equity ratio was 0.53, indicating that the company had a lower level of financial leverage compared to previous quarters. This suggests that Novanta has been relying less on debt financing and has a stronger equity position relative to its debt.
Looking back over the past two years, there has been a gradual decline in the debt-to-equity ratio from 0.79 in Q1 2022 to 0.53 in Q4 2023. This trend may signify that Novanta has been actively managing its debt levels and working towards a more conservative capital structure.
Overall, the decreasing trend in the debt-to-equity ratio indicates a positive shift towards a healthier financial position for Novanta Inc, with a greater emphasis on equity financing and reduced reliance on debt to fund its operations and investments.
Peer comparison
Dec 31, 2023