Nordson Corporation (NDSN)
Cash ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 136,201 | 115,679 | 143,138 | 129,073 | 121,994 | 163,457 | 128,737 | 120,892 | 170,539 | 299,972 | 174,235 | 133,320 | 225,738 | 208,293 | 221,783 | 306,255 | 115,097 | 151,164 | 147,845 | 149,183 |
| Short-term investments | US$ in thousands | — | 18,356 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 551,680 | 582,089 | 528,609 | 990,392 | 825,461 | 834,203 | 827,282 | 722,498 | 429,467 | 445,394 | 420,822 | 385,267 | 359,609 | 363,089 | 347,218 | 360,189 | 343,321 | 477,626 | 444,222 | 446,491 |
| Cash ratio | 0.25 | 0.23 | 0.27 | 0.13 | 0.15 | 0.20 | 0.16 | 0.17 | 0.40 | 0.67 | 0.41 | 0.35 | 0.63 | 0.57 | 0.64 | 0.85 | 0.34 | 0.32 | 0.33 | 0.33 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,201K
+ $—K)
÷ $551,680K
= 0.25
The cash ratio of Nordson Corp. has fluctuated over the past few quarters, with values ranging from 0.19 to 0.40. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q1 2024, the cash ratio is at 0.40, indicating that Nordson Corp. has $0.40 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong liquidity position compared to previous quarters.
In Q4 2023, the cash ratio decreased to 0.32, indicating a slight decrease in liquidity compared to the previous quarter. However, the ratio is still higher than in Q3 2023, where it stood at 0.38.
Comparing these values to the ratios in Q2 and Q1 2023, it is evident that Nordson Corp. has improved its ability to cover short-term liabilities with cash over time. The company had lower cash ratios in Q2 and Q1 2023, at 0.22 and 0.25, respectively.
Overall, Nordson Corp.'s cash ratio has shown some variability in recent quarters but has generally demonstrated an improvement in liquidity position. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations effectively.
Peer comparison
Jan 31, 2024