Novanta (LTS:0VAG) ROCE % : 9.51% (As of Mar. 2024)

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What is Novanta ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Novanta's annualized ROCE % for the quarter that ended in Mar. 2024 was 9.51%.

Novanta ROCE % Historical Data

The historical data trend for Novanta's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Novanta ROCE % Chart

Novanta Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.64

8.04

9.15

10.13

11.40

Novanta Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															10.66	12.27	12.93	9.82	9.51

Novanta ROCE % Calculation

Novanta's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	123.31	/	( ( (1241.212 - 164.522)	+	(1226.056 - 139.175) )	/ 2 )
	=	123.31	/	( (1076.69	+	1086.881)	/ 2 )
	=	123.31	/	1081.7855
	=	11.40 %

Novanta's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	111.56	/	( ( (1226.056 - 139.175)	+	(1410.592 - 151.406) )	/ 2 )
	=	111.56	/	( ( 1086.881	+	1259.186 )	/ 2 )
	=	111.56	/	1173.0335
	=	9.51 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Novanta (LTS:0VAG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Novanta ROCE % Related Terms

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Novanta (LTS:0VAG) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Novanta Inc (LTS:0VAG) » Definitions » ROCE %

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NOVT:USA NOVT:Mexico

Address

125 Middlesex Turnpike, Bedford, MA, USA, 01730

Website

https://www.novanta.com

Novanta Inc manufactures photonic and motion-control components for original equipment manufacturers in the medical equipment and industrial technology markets. The firm operates in three segments: photonics, vision, and precision motion. The photonics segment, which sells photonics-based products that include carbon dioxide lasers, laser scanning, super-resolution imaging lasers, and laser beam delivery items. The vision segment sells medical-grade technologies, including visualization solutions, imaging informatics products, and thermal printers contributing the majority of revenue. The precision motion segment sells optical encoders, motion control technology, and precision machined components. The firm generates the majority of its revenue from the United States and Europe.

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