Nordson Corporation (NDSN)
Debt-to-capital ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,621,390 | 345,320 | 781,709 | 1,067,950 | 1,075,400 |
| Total stockholders’ equity | US$ in thousands | 2,598,060 | 2,294,380 | 2,159,130 | 1,758,990 | 1,581,040 |
| Debt-to-capital ratio | 0.38 | 0.13 | 0.27 | 0.38 | 0.40 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,621,390K ÷ ($1,621,390K + $2,598,060K)
= 0.38
The debt-to-capital ratio for Nordson Corp. has fluctuated over the past five years from 0.44 in 2019 to 0.25 in 2022, and then increased to 0.40 in 2023. This ratio measures the proportion of the company's capital that is financed by debt, with a higher ratio indicating a greater reliance on debt financing. The increase in the ratio from 2022 to 2023 suggests a higher level of debt relative to capital, which may indicate increased financial risk. However, it is important to consider the reasons behind this change and to evaluate the company's overall financial health and management of debt. Further analysis of Nordson Corp.'s financial statements and industry benchmarks would be necessary to fully assess the implications of the changing debt-to-capital ratio.
Peer comparison
Oct 31, 2023