Nordson Corporation (NDSN)

Solvency ratios

	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
Debt-to-assets ratio	0.35	0.27	0.27	0.29	0.31	0.17	0.08	0.14	0.09	0.11	0.13	0.20	0.21	0.22	0.23	0.27	0.29	0.32	0.33	0.30
Debt-to-capital ratio	0.42	0.33	0.34	0.36	0.38	0.22	0.12	0.20	0.13	0.15	0.18	0.26	0.27	0.28	0.30	0.35	0.38	0.41	0.43	0.40
Debt-to-equity ratio	0.72	0.49	0.51	0.56	0.62	0.28	0.14	0.24	0.15	0.18	0.22	0.35	0.36	0.38	0.43	0.53	0.61	0.69	0.75	0.66
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

Nordson Corporation's solvency ratios have shown some fluctuations over the past several quarters. The debt-to-assets ratio has ranged from 0.08 to 0.35, reflecting the percentage of the company's assets financed by debt, with a general upward trend in recent periods.

Similarly, the debt-to-capital ratio has fluctuated between 0.12 and 0.42, indicating the proportion of the company's capital structure that is financed by debt. This ratio has also exhibited an upward trend over the quarters.

The debt-to-equity ratio, portraying the relative level of debt compared to shareholder equity, has varied between 0.14 and 0.75. This ratio has displayed significant fluctuations, indicating changes in the company's financing strategy and capital structure over time.

The financial leverage ratio, measuring the company's use of debt to support its operations, has ranged from 1.63 to 2.27. This ratio has shown fluctuations, reflecting changes in Nordson Corporation's leverage levels and the associated risks.

Overall, Nordson Corporation's solvency ratios suggest a varying degree of reliance on debt to finance its operations and investments. Management should continue monitoring these ratios to ensure financial stability and sustainability in the long term.

Coverage ratios

	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
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

Nordson Corporation's interest coverage ratio demonstrates a generally positive trend over the past few years, indicating the company's ability to meet its interest payment obligations comfortably. The interest coverage ratio has consistently remained above 1, which suggests that Nordson has been able to generate sufficient operating income to cover its interest expenses.

The interest coverage ratio has shown an increasing trend from 7.72 in October 2024 to 11.55 in January 2020 before dropping slightly to 10.57 in April 2020. The ratio spiked significantly in April 2023 to 21.43 and continued to increase steadily, reaching its peak at 29.97 in January 2022. This suggests a strong ability to service debt obligations through operating income during this period.

The most recent interest coverage ratio of 7.72 in October 2024, while lower than the previous quarter, still indicates a healthy ability to cover interest payments. However, investors may want to monitor future trends to ensure that the company maintains a comfortable margin to cover its interest expenses and sustain its financial health.