Nordson Corporation (NDSN)
Debt-to-capital ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,101,200 | 1,621,390 | 345,320 | 781,709 | 1,067,950 |
| Total stockholders’ equity | US$ in thousands | 2,932,190 | 2,598,060 | 2,294,380 | 2,159,130 | 1,758,990 |
| Debt-to-capital ratio | 0.42 | 0.38 | 0.13 | 0.27 | 0.38 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,101,200K ÷ ($2,101,200K + $2,932,190K)
= 0.42
The debt-to-capital ratio of Nordson Corporation has fluctuated over the past five years. In 2024, the ratio increased to 0.42 from 0.38 in 2023. This indicates that the company's level of debt relative to its total capital has slightly increased.
Comparing to the previous years, the debt-to-capital ratio in 2024 is higher than in 2022 when it was 0.13, signifying a significant increase in leverage. However, it is still lower than the levels observed in 2021 and 2020, when the ratios were 0.27 and 0.38, respectively.
The upward trend in the debt-to-capital ratio from 2022 to 2024 may suggest that Nordson Corporation has been utilizing more debt financing in recent years. This could indicate a strategic shift in the company's capital structure towards more debt reliance.
Further analysis and consideration of the company's overall financial health, profitability, and cash flow position would be necessary to assess the implications of this changing debt-to-capital ratio on Nordson Corporation's financial stability and risk profile.
Peer comparison
Oct 31, 2024