Nordson Corporation (NDSN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,247,080 | 5,251,770 | 4,197,030 | 4,193,120 | 4,237,420 | 3,820,380 | 3,823,820 | 3,796,340 | 3,834,990 | 3,790,960 | 3,670,080 | 3,594,910 | 3,683,400 | 3,674,660 | 3,819,960 | 3,742,900 | 3,550,870 | 3,516,450 | 3,491,540 | 3,475,090 |
| 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 |
| Financial leverage ratio | 1.93 | 2.02 | 1.63 | 1.68 | 1.73 | 1.67 | 1.74 | 1.73 | 1.73 | 1.76 | 1.78 | 1.84 | 1.98 | 2.09 | 2.16 | 2.27 | 2.17 | 2.22 | 2.26 | 2.36 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,247,080K ÷ $2,723,970K
= 1.93
The financial leverage ratio of Nordson Corp. has fluctuated over the past eight quarters, ranging from a low of 1.63 in Q3 2023 to a high of 2.02 in Q4 2023. This ratio indicates the company's level of debt relative to its equity, with a higher ratio suggesting a greater reliance on debt financing.
The downward trend from Q4 2023 to Q3 2023 may indicate a reduction in the company's debt relative to its equity during that period. However, the subsequent increase in the ratio in Q4 2023 suggests a potential shift towards higher debt levels or a decrease in equity.
Overall, Nordson Corp.'s financial leverage ratio has shown some volatility, but it is important to consider the context of the industry and business strategy when interpreting this metric. Investors and stakeholders should closely monitor changes in the financial leverage ratio to assess the company's capital structure and financial risk.
Peer comparison
Jan 31, 2024