Nordson Corporation (NDSN)
Financial leverage ratio
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,000,970 | 5,204,370 | 5,171,870 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,932,190 | 2,853,760 | 2,788,270 | 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 |
| Financial leverage ratio | 2.05 | 1.82 | 1.85 | 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 |
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 exhibited fluctuations over the past few periods, ranging from 1.63 to 2.27. The ratio peaked at 2.27 in the first quarter of 2020 but declined gradually until reaching a low of 1.63 in the third quarter of 2023. Subsequently, the ratio showed some variability before stabilizing around 1.8 in the most recent periods.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. Nordson Corporation's ratios above 1 suggest that the company has been using a significant amount of debt to fund its operations and growth. However, the decreasing trend from 2020 to 2023 indicates a potential shift towards a lower reliance on debt, which could be a positive sign for the company's financial health and risk management.
Overall, while the financial leverage ratio of Nordson Corporation has fluctuated over the periods analyzed, it is important for investors and stakeholders to monitor the company's leverage levels to assess its ability to meet its financial obligations and manage financial risks effectively.
Peer comparison
Oct 31, 2024