Nordson Corporation (NDSN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 115,952 | 165,324 | 125,446 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 18,356 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 594,663 | 538,541 | 530,283 | 537,702 | 590,886 | 533,793 | 527,851 | 546,649 | 537,313 | 530,761 | 499,535 | 465,721 | 489,389 | 516,685 | 470,622 | 455,376 | 471,873 | 498,283 | 474,913 | 471,626 |
| 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 |
| Quick ratio | 1.34 | 1.36 | 1.22 | 1.22 | 1.25 | 1.28 | 0.66 | 0.81 | 0.84 | 0.80 | 0.86 | 1.48 | 1.77 | 1.64 | 1.57 | 1.89 | 1.87 | 2.07 | 2.17 | 1.71 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Based on the data provided for Nordson Corporation, we observe fluctuations in the quick ratio over the last several quarters. The quick ratio has been fluctuating between 0.66 and 2.17 over the past five years.
In the most recent quarter, the quick ratio was 1.34, indicating that Nordson Corporation had $1.34 of liquid assets available to cover each $1 of current liabilities. This suggests a relatively healthy liquidity position.
However, compared to the previous quarter where the quick ratio was slightly higher at 1.36, there was a slight decrease in liquidity. It is important to note that despite fluctuations in the quick ratio, Nordson Corporation has generally maintained a quick ratio above 1 over the past five years, implying a consistent ability to cover short-term liabilities with liquid assets.
Further analysis and monitoring of Nordson Corporation's quick ratio over time can provide insights into the company's liquidity management, operational efficiency, and financial health.
Peer comparison
Oct 31, 2024