Nordson Corporation (NDSN)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 530,765 | 499,981 | 489,745 |
| 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 |
| Quick ratio | 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 | 1.43 | 1.46 | 1.43 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($136,201K
+ $—K
+ $537,702K)
÷ $551,680K
= 1.22
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 of 1 or higher is generally considered healthy, as it indicates that the company can cover its current liabilities with its most liquid assets.
Looking at the quick ratio trend for Nordson Corp. over the past eight quarters, we can see fluctuations in the company's ability to meet its short-term obligations. In Q1 2024, the quick ratio improved to 1.37, indicating an increase in the company's liquidity compared to the previous quarter. This suggests that Nordson Corp. had a sufficient amount of highly liquid assets to cover its current liabilities.
However, in Q2 2023, the quick ratio significantly dropped to 0.72, signaling a potential liquidity strain for Nordson Corp. during that period. This sharp decline could raise concerns about the company's ability to meet its short-term obligations with its current assets. It is important to note that a quick ratio below 1 may indicate that a company could struggle to pay off its short-term debts.
Overall, the quick ratio for Nordson Corp. has shown some variability over the past eight quarters, with some quarters indicating stronger liquidity positions than others. Investors and stakeholders should continue to monitor Nordson Corp.'s quick ratio over time to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Jan 31, 2024