Novanta Inc (NOVT)

Solvency ratios

	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
Debt-to-assets ratio	0.30	0.32	0.34	0.36	0.28	0.29	0.33	0.34	0.35	0.36	0.33	0.34	0.35	0.37	0.21	0.22	0.23	0.22	0.25	0.25
Debt-to-capital ratio	0.36	0.38	0.40	0.43	0.34	0.35	0.39	0.41	0.43	0.45	0.43	0.44	0.45	0.47	0.27	0.28	0.29	0.29	0.33	0.33
Debt-to-equity ratio	0.55	0.61	0.68	0.75	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
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

Novanta Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

- The Debt-to-assets ratio has been relatively stable around 0.20 to 0.40 over the past few years, indicating that the company relies on debt for a moderate portion of its assets.

- The Debt-to-capital ratio has also shown consistency, hovering between 0.25 to 0.50, reflecting a healthy balance between debt and equity in funding the company's operations.

- The Debt-to-equity ratio has displayed a decreasing trend from 0.50 to 0.55 in recent periods, suggesting that Novanta has been gradually reducing its reliance on debt financing in favor of equity.

- The Financial leverage ratio has remained between 1.80 to 2.40, indicating that the company's assets are financed largely by equity, with some moderate influence from debt.

Overall, Novanta Inc's solvency ratios point to a stable and balanced financial structure that should help the company manage its financial obligations effectively in the long term.

Coverage ratios

	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
Interest coverage	4.75	5.97	10.69	74.94	74.96	78.05	76.47	70.07	68.35	64.55	55.43	50.38	41.57	43.58	40.40	38.14	39.03	33.64	34.20	35.27

Novanta Inc's interest coverage ratio has shown a generally positive trend from March 31, 2020, to December 31, 2023, with an increasing trend in the ratio. This indicates the company's ability to comfortably cover its interest expenses with its earnings over this period.

The interest coverage ratio peaked at 78.05 on September 30, 2023, suggesting a very strong ability to pay interest obligations from operating income. However, there was a significant decline in the ratio from June 30, 2024, to December 31, 2024, dropping to 4.75.

This dramatic decrease in the interest coverage ratio in the second half of 2024 may raise concerns about Novanta's ability to meet its interest expenses from its operating profits. It would be essential for stakeholders to monitor this ratio closely in future periods to assess the company's financial health and ability to manage its debt obligations effectively.