The company has significantly improved its financial position, reducing the debt-to-equity ratio from 0.64 in 2025Q2 to 0.22 by 2026Q1.
| Total Current Assets | 786.8M | 782.6M |
| Cash & Short-Term Investments | 388.8M | 380.87M |
| Cash Only | 388.8M | 380.87M |
| Short-Term Investments | 0 | 0 |
| Accounts Receivable | 173.93M | 184.88M |
| Days Sales Outstanding | 62.71 | 68.82 |
| Inventory | 193.14M | 188.28M |
| Days Inventory Outstanding | 115.9 | 119.98 |
| Other Current Assets | 30.93M | 28.57M |
| Total Non-Current Assets | 1.01B | 1.02B |
| Property, Plant & Equipment | 157.32M | 160.19M |
| Fixed Asset Turnover | 6.25x | 6.12x |
| Goodwill | 643.38M | 647.35M |
| Intangible Assets | 170.3M | 180.78M |
| Long-Term Investments | 0 | 0 |
| Other Non-Current Assets | 11.59M | 8.81M |
| Total Assets | 1.8B | 1.81B |
| Asset Turnover | 0.61x | 0.54x |
| Asset Growth % | 29.85% | - |
| Total Current Liabilities | 220.79M | 212.37M |
| Accounts Payable | 96.2M | 94.86M |
| Days Payables Outstanding | 60.41 | 60.45 |
| Short-Term Debt | 50.96M | 48.98M |
| Deferred Revenue (Current) | 42.16M | 10.95M |
| Other Current Liabilities | 28.86M | 35.32M |
| Current Ratio | 3.56x | 3.69x |
| Quick Ratio | 2.69x | 2.80x |
| Cash Conversion Cycle | 118.19 | 128.35 |
| Total Non-Current Liabilities | 267.24M | 280.45M |
| Long-Term Debt | 201M | 251.41M |
| Capital Lease Obligations | 167.43M | 41.22M |
| Deferred Tax Liabilities | 75.73M | 18.09M |
| Other Non-Current Liabilities | 9.7M | -30.27M |
| Total Liabilities | 488.03M | 492.82M |
| Total Debt | 291.33M | 341.61M |
| Net Debt | -97.46M | -39.26M |
| Debt / Equity | 0.22x | 0.26x |
| Debt / EBITDA | 1.82x | 1.91x |
| Net Debt / EBITDA | -0.61x | -0.22x |
| Interest Coverage | 6.23x | 5.43x |
| Total Equity | 1.31B | 1.31B |
| Equity Growth % | 70.32% | - |
| Book Value per Share | 31.85 | 35.81 |
| Total Shareholders' Equity | 1.31B | 1.31B |
| Common Stock | 423.86M | 423.86M |
| Retained Earnings | 342.48M | 321.38M |
| Treasury Stock | 0 | 0 |
| Accumulated OCI | -11.72M | -3M |
| Minority Interest | 0 | 0 |
Acquisition integration and leverage
As reported in recent financial filings, Novanta's debt-to-equity ratio improved significantly from 0.64 in 2025Q2 to 0.22 by 2026Q1, signaling a deliberate shift toward a more conservative capital structure that enhances the firm's resilience against cyclical downturns in the industrial and medical hardware sectors.
The reduction in total debt from over $500 million in 2025Q3 to $291.3 million in 2026Q1 suggests management is prioritizing balance sheet flexibility following a period of aggressive inorganic expansion. This trajectory indicates a transition from a debt-funded acquisition phase to a more sustainable model of internal capital generation.
Based on the provided quarterly data, Novanta successfully reduced its total debt burden by approximately 42% between 2025Q3 and 2026Q1, a move that appears to mitigate refinancing risks and provides the company with greater optionality to navigate potential volatility in its specialized component markets.
The rapid paydown of debt suggests that the company's cash flow generation is sufficient to support both operational requirements and debt service without relying on external financing. Investors should monitor whether this deleveraging trend persists or if management intends to utilize this newfound capacity for further strategic acquisitions.
According to the latest balance sheet figures, Novanta's current ratio expanded to 3.56 in 2026Q1, up from 2.51 in 2025Q3, reflecting a robust liquidity position that provides a substantial buffer against supply chain disruptions or sudden shifts in the demand for its precision motion and optical components.
The significant increase in cash reserves to $388.8 million suggests that the company is well-positioned to manage its working capital needs, which are often lumpy due to the nature of long-cycle OEM contracts. This liquidity profile appears to be a defensive strength, allowing the firm to maintain operations even if revenue recognition cycles experience temporary delays.
As disclosed in the quarterly balance sheets, goodwill remains a significant component of total assets at $643.4 million, representing roughly 35% of the total asset base, which suggests that the company's valuation is heavily tied to the successful integration of past acquisitions into its core business.
The reliance on intangible assets highlights the importance of the company's M&A strategy, as any impairment of these assets could materially impact the reported equity value. Analysts should evaluate whether the current level of goodwill reflects the long-term earnings potential of the acquired medical and vision technology units.
Based on an analysis of the balance sheet, the company's reliance on goodwill and intangible assets, which total over $640 million, may mask the true economic cost of its acquisition-led growth strategy, potentially overstating the tangible value available to shareholders in a downside scenario.
While the headline debt-to-equity ratio appears healthy, the high proportion of non-tangible assets suggests that the balance sheet is sensitive to the performance of acquired units. Investors should consider the risk that future earnings may be burdened by amortization charges or potential write-downs if the integration of these specialized technology firms fails to meet projected synergies.
Quick answers to the most common questions about buying NOVTU stock.
As of 2025, Novanta Inc. Tangible Equity Units (NOVTU) had total assets of $1.81B including $782.6M in current assets.
Novanta Inc. Tangible Equity Units (NOVTU) carries total debt of $341.6M, offset by $380.9M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Novanta Inc. Tangible Equity Units (NOVTU) has total shareholders' equity (book value) of $1.31B ($35.81 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Novanta Inc. Tangible Equity Units (NOVTU) reported a current ratio of 3.69x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.