Nordson Corporation (NDSN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 478,247 | 456,612 | 462,075 |
| Interest expense (ttm) | US$ in thousands | 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 | 47,144 | 48,603 | 50,868 |
| Interest coverage | 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 | 10.14 | 9.39 | 9.08 |
January 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $693,375K ÷ $70,417K
= 9.85
The interest coverage ratio of Nordson Corp. has shown a consistent and strong increase over the past several quarters. In Q1 2024, the interest coverage ratio was 9.77, which increased from 11.31 in Q4 2023, 17.42 in Q3 2023, and 21.33 in Q2 2023.
This positive trend indicates that Nordson Corp. has been effectively generating enough operating income to cover its interest expenses in a much more robust manner in recent quarters. The substantial growth in the interest coverage ratio from Q1 2023 to Q1 2024, where it rose from 25.31 to 9.77, showcases the company's improving financial health and ability to meet its interest obligations comfortably.
The consistently high interest coverage ratios above 9.0 over the last 8 quarters also suggest that Nordson Corp. has a solid ability to service its debt and indicates a lower risk of default on its outstanding obligations. Overall, the trend in the interest coverage ratio reflects Nordson Corp.'s strong financial position and efficient management of its debt obligations.
Peer comparison
Jan 31, 2024