Novanta Inc (NOVT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 869,736 | 857,960 | 783,373 | 752,660 |
| 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 |
| Financial leverage ratio | 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 | 2.08 | 2.13 | 2.03 | 1.98 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,226,060K ÷ $673,460K
= 1.82
The financial leverage ratio of Novanta Inc has been fluctuating over the past eight quarters. The ratio decreased from 2.15 in Q4 2022 to 1.82 in Q4 2023, indicating a decrease in the company's reliance on debt to finance its operations. However, the ratio has shown some variability in the subsequent quarters, with minor increases and decreases observed.
In Q3 2023, the ratio increased to 1.85 before climbing further to 1.97 in Q2 2023, suggesting a slight uptick in leverage. This trend continued into Q1 2023, where the ratio reached 2.05, indicating a higher level of debt financing compared to the previous quarters.
Overall, the financial leverage ratio of Novanta Inc has shown a general downward trend since Q4 2022, potentially signaling improved financial stability and a lower risk of financial distress due to excessive debt levels. However, the recent increases in the ratio should be closely monitored to assess the company's future debt management strategies and their impact on its overall financial health.
Peer comparison
Dec 31, 2023