Nordson Corporation (NDSN)
Financial leverage ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,000,970 | 5,251,770 | 3,820,380 | 3,790,960 | 3,674,660 |
| Total stockholders’ equity | US$ in thousands | 2,932,190 | 2,598,060 | 2,294,380 | 2,159,130 | 1,758,990 |
| Financial leverage ratio | 2.05 | 2.02 | 1.67 | 1.76 | 2.09 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,000,970K ÷ $2,932,190K
= 2.05
The financial leverage ratio of Nordson Corporation has shown fluctuations over the past five years. The ratio indicates the degree to which the company relies on debt financing in relation to equity.
In 2024, the financial leverage ratio increased to 2.05 from 2.02 in 2023, suggesting a slightly higher reliance on debt to fund its operations. This may indicate a strategic decision to leverage debt to finance expansion or other initiatives.
Comparing to 2022 when the ratio was at 1.67, the company's reliance on debt has significantly increased. However, in 2021 and 2020, the ratio was at 1.76 and 2.09, respectively, indicating fluctuating levels of leverage in those years.
Overall, the trend in recent years suggests varying levels of reliance on debt to fund operations, with the ratio fluctuating within a range. It would be important to further investigate the reasons behind these changes and assess the potential implications for the company's financial stability and risk management strategies.
Peer comparison
Oct 31, 2024