Nordson Corporation (NDSN)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.40 | 4.72 | 4.61 | 4.51 | 4.45 | 4.52 | 4.51 | 4.38 | 5.07 | 4.72 | 4.88 | 5.02 | 5.52 | 6.15 | 6.23 | 6.47 | 6.63 | 5.67 | 5.64 | 6.03 | |
| DOH | days | 82.93 | 77.41 | 79.21 | 80.94 | 82.10 | 80.73 | 80.88 | 83.43 | 71.94 | 77.28 | 74.86 | 72.67 | 66.18 | 59.33 | 58.58 | 56.38 | 55.09 | 64.33 | 64.70 | 60.57 |
October 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.40
= 82.93
The days of inventory on hand (DOH) for Nordson Corporation have shown fluctuating trends over the past few years. The DOH has ranged from a low of 55.09 days as of January 31, 2021, to a high of 83.43 days as of January 31, 2023.
In the most recent period ending October 31, 2024, the DOH stands at 82.93 days, indicating that on average, Nordson holds inventory for approximately 83 days before it is sold. This is slightly higher compared to previous quarters, such as July 31, 2024 (77.41 days) and April 30, 2024 (79.21 days).
The upward trend in DOH may suggest potential issues with inventory management efficiency, as higher DOH values typically imply slower turnover of inventory. This could lead to higher carrying costs, tied-up capital, and potential obsolescence risks.
It is important for Nordson to closely monitor its inventory levels and strive for a balance between ensuring product availability for customers and minimizing excess inventory. Regular inventory turnover analysis and adjustments to procurement and production processes may help optimize inventory management and reduce the DOH to improve liquidity and profitability.
Peer comparison
Oct 31, 2024