Nordson Corporation (NDSN)

Solvency ratios

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
Debt-to-assets ratio 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 0.31 0.34 0.35
Debt-to-capital ratio 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 0.40 0.43 0.45
Debt-to-equity ratio 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 0.68 0.76 0.83
Financial leverage ratio 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 2.22 2.26 2.36

Nordson Corp.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight fluctuation over the quarters, ranging from 0.20 to 0.33, indicating that between 20% to 33% of the company's assets are financed by debt. This ratio suggests a relatively conservative approach to debt financing.

The debt-to-capital ratio has followed a similar trend, ranging from 0.25 to 0.40, indicating that between 25% to 40% of Nordson's capital structure is comprised of debt. This ratio also suggests a moderate level of debt utilization in the company's capital structure.

The debt-to-equity ratio has shown some variation, fluctuating between 0.33 to 0.67 over the quarters. This ratio suggests that between 33% to 67% of Nordson's assets are financed by equity, showcasing a mix of debt and equity financing in the company's capital structure.

The financial leverage ratio, on the other hand, has ranged from 1.63 to 2.02, indicating a moderate level of financial leverage employed by the company to generate returns for shareholders. Overall, Nordson Corp. appears to maintain a balanced approach to solvency, managing its debt levels prudently while utilizing a mix of debt and equity in its capital structure to support its operations and growth initiatives.

Coverage ratios

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
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

The interest coverage ratio of Nordson Corp. has exhibited a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest payment obligations from its operating income. The ratio has ranged from a low of 9.77 in Q1 2024 to a high of 31.34 in Q4 2022, showcasing a strong capacity to cover interest expenses.

The company's interest coverage ratio peaked in Q4 2022 at 31.34, indicating that Nordson Corp. generated operating income more than 31 times its interest expenses during that period. This high ratio suggests a robust financial position and the ability to comfortably cover debt servicing costs.

Although the interest coverage ratio has fluctuated over the quarters, it has consistently remained well above the industry benchmark of 2.0, demonstrating Nordson Corp.'s financial stability and efficient management of debt. The declining trend in recent quarters, however, warrants continuous monitoring to ensure sustainable interest coverage in the future.

Overall, Nordson Corp.'s interest coverage ratio reflects a healthy financial position, implying a strong capacity to honor its debt obligations and indicating a lower risk of default due to insufficient operating income to cover interest expenses.