Nordson Corporation (NDSN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 478,247 | 456,612 | 462,075 |
| Long-term debt | US$ in thousands | 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 | 1,075,400 | 1,179,870 | 1,220,390 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,581,040 | 1,546,890 | 1,471,260 |
| Return on total capital | 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% | 18.00% | 16.75% | 17.17% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $693,375K ÷ ($1,513,870K + $2,723,970K)
= 16.36%
Nordson Corp.'s return on total capital has displayed fluctuating trends over the provided quarters. The company's return on total capital stood at 15.74% in Q1 2024, slightly increasing from the previous quarter's 15.46%. Prior to this, there was a significant decrease from Q3 2023's 19.38% to 19.62% in Q2 2023.
Further back, the return on total capital dropped to 19.86% in Q1 2023, compared to the peak of 23.04% in Q4 2022. The trend in the preceding quarters showed stable return figures, with values around the 22-23% range, with Q3 2022 at 22.38% and Q2 2022 at 22.65%.
Overall, Nordson Corp.'s return on total capital has experienced some variability in recent quarters but generally demonstrates a favorable performance, particularly in the quarters of 2022. It would be beneficial for stakeholders to monitor any shifts in the company's capital utilization efficiency for potential impact on its financial performance and strategic decision-making.
Peer comparison
Jan 31, 2024