Nordson Corporation (NDSN)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 115,952 | 115,679 | 163,457 | 299,972 | 208,293 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 594,663 | 590,886 | 537,313 | 489,389 | 471,873 |
| Total current liabilities | US$ in thousands | 528,477 | 582,089 | 834,203 | 445,394 | 363,089 |
| Quick ratio | 1.34 | 1.21 | 0.84 | 1.77 | 1.87 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($115,952K
+ $—K
+ $594,663K)
÷ $528,477K
= 1.34
The quick ratio of Nordson Corporation has shown fluctuations over the past five years. In 2024, the quick ratio stood at 1.34, indicating that the company had $1.34 in highly liquid assets available to cover each dollar of its current liabilities. This was an improvement compared to the previous year, where the quick ratio was 1.21.
In 2022, the quick ratio dropped significantly to 0.84, suggesting a potential liquidity challenge, as the company had only $0.84 in quick assets for every dollar of current liabilities. However, Nordson Corporation's liquidity position improved in 2023, with the quick ratio increasing to 1.77.
The highest quick ratio in the past five years was observed in 2020, at 1.87, indicating a strong liquidity position with more than enough quick assets to cover current liabilities.
Overall, the quick ratio fluctuated over the years, showing both strengths and potential vulnerabilities in Nordson Corporation's ability to meet its short-term obligations using its liquid assets. A higher quick ratio is generally preferred as it signifies better liquidity and a lower risk of insolvency.
Peer comparison
Oct 31, 2024