Nordson Corporation (NDSN)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 115,679 | 163,457 | 299,972 | 208,293 | 151,164 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 590,886 | 537,313 | 489,389 | 471,873 | 530,765 |
| Total current liabilities | US$ in thousands | 582,089 | 834,203 | 445,394 | 363,089 | 477,626 |
| Quick ratio | 1.21 | 0.84 | 1.77 | 1.87 | 1.43 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($115,679K
+ $—K
+ $590,886K)
÷ $582,089K
= 1.21
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Nordson Corp.'s quick ratio has fluctuated over the past five years. In 2023, the quick ratio improved to 1.33, indicating the company had $1.33 in liquid assets for every $1 of current liabilities. This was a significant improvement from 2022 when the quick ratio was 0.90, suggesting a potential liquidity strain. In 2021, the quick ratio was 1.88, and in 2020 it was 1.99, reflecting strong liquidity positions in those years. However, in 2019, the quick ratio dropped to 1.52, signaling a slight decline in short-term liquidity. Overall, Nordson Corp.'s quick ratio has shown variability, and it's important to consider the company's specific operational and industry factors when assessing its liquidity position.
Peer comparison
Oct 31, 2023