The financial leverage profile has transformed dramatically, with the D/E ratio contracting from 0.64 to 0.18 and total debt reduced by $220 million since mid-2025, leaving an exceptional cash balance of $718.6 million.
Novanta Inc. Tangible Equity Units (NOVTU) balance sheet — 1-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 |
|---|
| Total Current Assets | 1.12B | 782.6M |
| Cash & Short-Term Investments | 718.65M | 380.87M |
| Cash Only | 718.65M | 380.87M |
| Short-Term Investments | 0 | 0 |
| Accounts Receivable | 191.54M | 184.88M |
| Days Sales Outstanding | 63.89 | 68.82 |
| Inventory | 192.71M | 188.28M |
| Days Inventory Outstanding | 116.37 | 119.98 |
| Other Current Assets | 20.63M | 28.57M |
| Total Non-Current Assets | 1.02B | 1.02B |
| Property, Plant & Equipment | 166.53M | 160.19M |
| Fixed Asset Turnover | 6.37x | 6.12x |
| Goodwill | 642.37M | 647.35M |
| Intangible Assets | 159.83M | 180.78M |
| Long-Term Investments | 0 | 0 |
| Other Non-Current Assets | 15.58M | 8.81M |
| Total Assets | 2.14B | 1.81B |
| Asset Turnover | 0.57x | 0.54x |
| Asset Growth % | 71.45% | - |
| Total Current Liabilities | 245.88M | 212.37M |
| Accounts Payable | 97.48M | 94.86M |
| Days Payables Outstanding | 59.99 | 60.45 |
| Short-Term Debt | 41.5M | 48.98M |
| Deferred Revenue (Current) | 64.77M | 10.95M |
| Other Current Liabilities | 46.02M | 35.32M |
| Current Ratio | 4.57x | 3.69x |
| Quick Ratio | 3.79x | 2.80x |
| Cash Conversion Cycle | 120.27 | 128.35 |
| Total Non-Current Liabilities | 277.23M | 280.45M |
| Long-Term Debt | 188.16M | 251.41M |
| Capital Lease Obligations | 168.76M | 41.22M |
| Deferred Tax Liabilities | 71.56M | 18.09M |
| Other Non-Current Liabilities | 8.82M | -30.27M |
| Total Liabilities | 523.11M | 492.82M |
| Total Debt | 284.72M | 341.61M |
| Net Debt | -433.93M | -39.26M |
| Debt / Equity | 0.18x | 0.26x |
| Debt / EBITDA | 1.63x | 1.91x |
| Net Debt / EBITDA | -2.48x | -0.22x |
| Interest Coverage | 8.19x | 4.24x |
| Total Equity | 1.62B | 1.31B |
| Equity Growth % | 172.01% | - |
| Book Value per Share | 39.27 | 35.81 |
| Total Shareholders' Equity | 1.62B | 1.31B |
| Common Stock | 423.86M | 423.86M |
| Retained Earnings | 355.02M | 321.38M |
| Treasury Stock | 0 | 0 |
| Accumulated OCI | -10.85M | -3M |
| Minority Interest | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Goodwill concentration risk
Leverage Reduction and Cash Accumulation
Novanta's balance sheet has strengthened dramatically, with the D/E ratio collapsing from 0.64 in mid-2025 to 0.18 in 2026Q2, driven by a substantial debt paydown and the accumulation of $718.6 million in cash, as reported in recent SEC filings.
The trajectory signals a shift from a moderately leveraged to a conservatively financed position, which appears to have been enabled by strong cash flow generation and a strategic decision to prioritize deleveraging. This rapid improvement in financial flexibility provides significant buffer and optionality, though it also suggests the company may be conserving capital amid opportunities for reinvestment or M&A.
Exceptional Liquidity Buffer
The current ratio expanded to a robust 4.57 in 2026Q2, underpinned by a cash position of $718.6 million that now represents nearly 35% of total assets, providing an exceptional operational cushion according to the company's reported figures.
This liquidity profile appears to offer substantial protection against operational volatility and macroeconomic shocks, far exceeding peer norms within the hardware equipment sector. The substantial cash hoard, when viewed alongside the low leverage, suggests management is prioritizing balance sheet strength, though investors should monitor whether this represents a permanent strategic shift or a temporary holding pattern pending deployment.
Asset-Light Transformation Completed
Goodwill and intangible assets comprise approximately 31% of total assets, yet the asset base has expanded significantly to $2.1 billion while tangible asset intensity remains moderate, reflecting a business model transition towards higher-margin, IP-driven subsystems.
The persistent weight of goodwill indicates past acquisition-driven growth, which now requires careful monitoring for impairment risk given its significant share of the balance sheet. The moderate PPE base relative to total assets suggests an asset-light model, but the substantial investment in intangibles means asset quality is heavily dependent on the sustainable competitive advantages and cash flow generation of the acquired businesses.
Equity Growth from Retained Earnings
Total equity expanded by $800 million over the past six quarters to $1.6 billion, driven almost entirely by retained earnings which grew to $355 million, indicating that internal profit generation, not external financing, is fueling the strengthened equity base.
The reliance on retained earnings for equity growth suggests a self-funding business model, which is a positive indicator of financial health and operational maturity. However, the scale of the equity increase relative to net income suggests other comprehensive income or perhaps equity unit conversions have played a role, warranting a closer look at the specific drivers within shareholders' equity.
Strategic Debt Paydown Prioritized
Total debt has been aggressively reduced by $220 million since the second quarter of 2025, from $513.4 million to $284.7 million, indicating a clear strategic shift toward minimizing financial leverage and associated interest expense.
This deleveraging appears to be a proactive choice rather than a necessity, given the strong liquidity and cash flow generation implied by the improved working capital. The reduction in debt lowers the company's fixed financial obligations and refinancing risk, but also suggests that the cost of capital may now be a less critical consideration for future investment decisions.
Working Capital Volatility Masks Cash Stability
While the headline liquidity is strong, the underlying cash position is highly volatile, with cash swinging from $89.2 million to $718.6 million in three quarters, largely due to massive working capital fluctuations that make the precise timing of cash availability less predictable.
This volatility, highlighted by the prior cash flow analysis, suggests that the impressive cash balance in any single quarter may not be fully representative of the underlying run-rate cash generation. Investors should therefore monitor the stability of working capital components, such as accounts receivable and inventory levels, to assess the true durability of the cash position beyond the balance sheet snapshot.