Nordson Corporation (NDSN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 676,655 | 685,316 | 691,220 | 693,375 | 674,844 | 670,496 | 682,597 | 655,685 | 671,692 | 633,877 | 634,171 | 652,540 | 599,667 | 487,391 | 403,676 | 365,557 | 333,648 | 438,723 | 466,899 | 470,674 |
| Long-term debt | US$ in thousands | 2,101,200 | 1,398,160 | 1,414,360 | 1,513,870 | 1,621,390 | 727,455 | 345,899 | 595,166 | 345,320 | 401,698 | 479,703 | 773,191 | 781,709 | 789,731 | 829,044 | 981,284 | 1,067,950 | 1,221,080 | 1,237,220 | 1,074,310 |
| Total stockholders’ equity | US$ in thousands | 2,932,190 | 2,853,760 | 2,788,270 | 2,723,970 | 2,598,060 | 2,579,810 | 2,497,000 | 2,446,680 | 2,294,380 | 2,199,040 | 2,190,620 | 2,218,630 | 2,159,130 | 2,063,180 | 1,950,360 | 1,857,180 | 1,758,990 | 1,769,910 | 1,652,490 | 1,634,270 |
| Return on total capital | 13.44% | 16.12% | 16.45% | 16.36% | 15.99% | 20.27% | 24.01% | 21.56% | 25.45% | 24.37% | 23.75% | 21.81% | 20.39% | 17.08% | 14.52% | 12.88% | 11.80% | 14.67% | 16.16% | 17.38% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $676,655K ÷ ($2,101,200K + $2,932,190K)
= 13.44%
The return on total capital for Nordson Corporation has exhibited fluctuations over the past few periods. From January 2020 to October 2024, the return on total capital has varied, with values ranging from 11.80% to 25.45%.
The return on total capital was relatively stable around the range of 20% from January 2021 to April 2023 before experiencing a notable increase to 24.01% in July 2023. This was followed by a further peak at 25.45% in October 2023, indicating strong performance in effectively utilizing total capital to generate profits.
However, the return on total capital exhibited a decline in the subsequent periods from January 2024 to October 2024, with values ranging from 13.44% to 16.45%. Despite this decrease, the return on total capital remains at a relatively healthy level, suggesting Nordson Corporation's ability to generate profits from the total capital employed in its operations, albeit with some variability in performance.
Peer comparison
Oct 31, 2024