Nordson Corporation (NDSN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 676,655 | 685,316 | 691,220 | 693,375 | 674,844 | 670,496 | 682,597 | 655,685 | 671,692 | 633,877 | 634,171 | 652,540 | 599,667 | 487,391 | 403,676 | 365,557 | 333,648 | 438,723 | 466,899 | 470,674 |
| Interest expense (ttm) | US$ in thousands | 87,636 | 87,327 | 80,613 | 70,417 | 59,505 | 38,197 | 31,845 | 27,293 | 22,413 | 22,029 | 22,431 | 24,209 | 25,491 | 27,022 | 28,197 | 29,351 | 32,159 | 36,254 | 40,440 | 44,519 |
| Interest coverage | 7.72 | 7.85 | 8.57 | 9.85 | 11.34 | 17.55 | 21.43 | 24.02 | 29.97 | 28.77 | 28.27 | 26.95 | 23.52 | 18.04 | 14.32 | 12.45 | 10.37 | 12.10 | 11.55 | 10.57 |
October 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $676,655K ÷ $87,636K
= 7.72
The interest coverage ratio of Nordson Corporation has shown a generally upward trend over the provided periods, indicating the company's ability to comfortably meet its interest obligations with its earnings. The ratio has consistently been above 1, reflecting that Nordson has generated sufficient operating income to cover its interest expenses.
The ratio peaked at 29.97 in the Oct 31, 2022 period, indicating strong financial health and a comfortable cushion for covering interest payments. This was followed by a gradual decline in the ratio, reaching 7.72 in the most recent period of Oct 31, 2024. While the ratio has decreased from its peak, it still remains at a healthy level above 7, suggesting Nordson's continued ability to service its debt obligations.
Overall, Nordson Corporation's interest coverage ratio demonstrates a stable and healthy financial position, with the company generating enough income to easily cover its interest expenses over the analyzed periods.
Peer comparison
Oct 31, 2024