Nordson Corporation (NDSN)
Days of inventory on hand (DOH)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.45 | 5.07 | 5.52 | 6.63 | 6.23 | |
| DOH | days | 82.10 | 71.94 | 66.18 | 55.09 | 58.58 |
October 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.45
= 82.10
To analyze Nordson Corp.'s days of inventory on hand (DOH) over the past five years, we can observe an increasing trend in the DOH metric. This indicates that the company has been holding inventory for longer periods before it is sold.
In 2019, Nordson Corp. had 103.22 days of inventory on hand, which gradually increased to 137.96 days in 2023. This upward trend suggests that the company may be facing challenges in efficiently managing its inventory levels, which could lead to increased holding costs and potential obsolescence risks.
The rising DOH may also indicate potential inefficiencies in the company's supply chain or production processes. Investors and stakeholders should closely monitor Nordson Corp.'s efforts to improve inventory management and reduce the number of days inventory is held to ensure optimal utilization of resources and to mitigate the associated risks.
Peer comparison
Oct 31, 2023