Nordson Corporation (NDSN)
Interest coverage
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 674,001 | 674,844 | 671,692 | 599,667 | 333,649 |
| Interest expense | US$ in thousands | 84,011 | 59,505 | 22,413 | 25,491 | 32,160 |
| Interest coverage | 8.02 | 11.34 | 29.97 | 23.52 | 10.37 |
October 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $674,001K ÷ $84,011K
= 8.02
Nordson Corporation's interest coverage ratio has exhibited fluctuations over the past five years. The ratio decreased from 11.34 in 2023 to 8.02 in 2024, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. However, it is important to note that an interest coverage ratio of 8.02 still suggests that Nordson Corporation is generating sufficient earnings to cover its interest obligations.
The trend over the five-year period reflects variability in the company's ability to service its debt obligations. The peak interest coverage ratio of 29.97 in 2022 indicates a strong ability to cover interest payments, whereas the lower ratios in 2020 and 2024 suggest potential concerns regarding debt servicing capabilities. Overall, Nordson Corporation's interest coverage ratio has shown some volatility, and it is important for investors and stakeholders to monitor this metric in conjunction with other financial indicators to assess the company's financial health and stability.
Peer comparison
Oct 31, 2024