Nordson Corporation (NDSN)

The solvency ratios of Nordson Corp. reflect its ability to meet long-term financial obligations and maintain a healthy capital structure over the past five years. The debt-to-assets ratio has shown an increasing trend, from 0.20 in 2019 to 0.33 in 2023, indicating that the company's reliance on debt to finance its assets has grown, which may imply increased financial risk.

Similarly, the debt-to-capital and debt-to-equity ratios have also demonstrated an upward trajectory, signaling a higher proportion of debt in the company's capital structure. This development may suggest a greater reliance on debt financing, potentially increasing the company's financial leverage.

The financial leverage ratio has shown a consistent increase over the years, reaching 2.02 in 2023 from 1.67 in 2019. This signifies that the company's reliance on debt to finance its operations has intensified, leading to a higher level of financial leverage.

Overall, the increasing trend in these solvency ratios may raise concern about Nordson Corp.'s long-term financial stability and ability to manage its debt levels effectively. It is essential for investors and stakeholders to closely monitor the company's debt management and capital structure to evaluate its solvency risk.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. Nordson Corp.'s interest coverage has shown fluctuations over the past five years, with a peak in 2022 at 31.34 and a low in 2019 at 10.25. In 2023, the interest coverage ratio decreased to 11.31, indicating Nordson's ability to cover interest expenses declined compared to the previous year. However, it's still above 1, suggesting that the company's earnings are sufficient to cover its interest payments. Nonetheless, investors and creditors may monitor this trend closely to ensure the company maintains a healthy level of interest coverage.