Novanta Inc (NOVT)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,388,510 | 1,418,820 | 1,398,570 | 1,410,590 | 1,226,060 | 1,194,280 | 1,232,720 | 1,225,820 | 1,241,210 | 1,207,530 | 1,205,840 | 1,206,160 | 1,227,880 | 1,210,240 | 877,945 | 852,254 | 865,179 | 857,534 | 861,027 | 841,968 |
| Total stockholders’ equity | US$ in thousands | 745,698 | 742,195 | 701,992 | 681,715 | 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 |
| Financial leverage ratio | 1.86 | 1.91 | 1.99 | 2.07 | 1.82 | 1.85 | 1.97 | 2.05 | 2.15 | 2.23 | 2.27 | 2.26 | 2.36 | 2.42 | 1.78 | 1.79 | 1.81 | 1.90 | 1.99 | 2.04 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,388,510K ÷ $745,698K
= 1.86
Novanta Inc's financial leverage ratio has shown fluctuations over the last few years. From March 31, 2020, to June 30, 2021, the ratio steadily decreased from 2.04 to 1.78, indicating a reduction in the company's reliance on debt to finance its operations. This downward trend suggested improved financial stability and lower risk stemming from debt obligations during this period.
However, from September 30, 2021, to March 31, 2022, the ratio surged from 1.78 to 2.26, reaching its peak at 2.42 on September 30, 2021. This sudden increase suggested a significant increase in the company's debt relative to its equity, potentially indicating a higher level of financial risk and leverage.
Subsequently, the ratio gradually decreased from September 2021 to December 31, 2024, reaching 1.86, which is slightly lower than the starting point in 2020. Despite the fluctuation, the ratio remained above 1, indicating that Novanta Inc continues to have a leveraged financial structure throughout the period under consideration.
Overall, the fluctuations in Novanta Inc's financial leverage ratio signify changes in the company's capital structure and its reliance on debt financing over the analyzed period. It is essential for stakeholders to monitor these ratios to assess the company's financial risk and leverage levels effectively.
Peer comparison
Dec 31, 2024