Nordson Corporation (NDSN)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 115,679 | 163,457 | 299,972 | 208,293 | 151,164 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 582,089 | 834,203 | 445,394 | 363,089 | 477,626 |
| Cash ratio | 0.20 | 0.20 | 0.67 | 0.57 | 0.32 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($115,679K
+ $—K)
÷ $582,089K
= 0.20
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Nordson Corp.'s cash ratio has exhibited fluctuation over the past five years, with values ranging from 0.25 to 0.78. In 2023, the cash ratio was 0.32, indicating that for every dollar of current liabilities, the company had $0.32 in cash and cash equivalents. This suggests a moderate ability to meet short-term obligations with its liquid assets. However, it is important to note that the cash ratio decreased from the previous year, which may indicate a reduction in the company's liquidity compared to the prior period. Therefore, Nordson Corp. should continue monitoring its cash position and liquidity management to ensure it can meet its short-term obligations effectively.
Peer comparison
Oct 31, 2023