Nordson Corporation (NDSN)
Current ratio
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,275,030 | 1,224,140 | 1,185,590 | 1,208,110 | 1,229,310 | 1,176,920 | 1,155,440 | 1,178,420 | 1,132,970 | 1,115,610 | 1,059,840 | 1,054,240 | 1,164,840 | 1,045,760 | 949,425 | 1,028,130 | 1,020,610 | 1,080,700 | 1,143,280 | 930,324 |
| Total current liabilities | US$ in thousands | 528,477 | 518,267 | 536,011 | 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 |
| Current ratio | 2.41 | 2.36 | 2.21 | 2.19 | 2.11 | 2.23 | 1.17 | 1.43 | 1.36 | 1.35 | 1.47 | 2.45 | 2.62 | 2.49 | 2.46 | 2.86 | 2.81 | 3.11 | 3.17 | 2.71 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,275,030K ÷ $528,477K
= 2.41
The current ratio of Nordson Corporation has fluctuated over the past several quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
Looking at the trend, from Oct 31, 2020, to Oct 31, 2021, the current ratio was relatively high and stable, indicating a strong ability to meet short-term obligations. However, there was a significant drop in the ratio in Apr 30, 2022, and Jul 31, 2023, before recovering in Oct 31, 2023.
There was a sharp decrease in the current ratio in Apr 30, 2023, falling to 1.17, which may raise some concerns about the company's liquidity position. However, the ratio improved in Jan 31, 2024, and continued to show improvement up to Oct 31, 2024.
Overall, the current ratio has demonstrated some volatility in recent quarters but has mostly remained above 1, indicating that Nordson Corporation has had sufficient current assets to cover its short-term liabilities. It is essential for the company to ensure this ratio remains at a healthy level to meet its ongoing financial obligations.
Peer comparison
Oct 31, 2024