Nordson Corporation (NDSN)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 6.23 | 5.55 | 4.94 | |
| DOH | days | 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 | 58.58 | 65.77 | 73.94 |
January 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.51
= 80.94
Days of Inventory on Hand (DOH) is a measure that indicates how many days, on average, a company holds its inventory before it is sold. A lower DOH is generally preferred as it suggests efficient inventory management.
Analyzing Nordson Corp.'s DOH over the past eight quarters reveals some fluctuations. The trend shows that the company has maintained a relatively stable DOH over the period, with values ranging from 120.25 days to 138.93 days.
In Q1 2023, Nordson Corp. had the lowest DOH of 120.25 days, indicating that the company was more efficient in managing its inventory during that period. Although there was a slight increase in DOH in subsequent quarters, Nordson Corp. managed to keep the metric within a fairly narrow range.
In Q4 2023, the DOH increased to 137.96 days, which was the highest level observed in the data provided. This may signal a potential slowdown in sales or challenges in inventory turnover during that period.
Overall, Nordson Corp.'s DOH appears to be relatively stable, but the company may benefit from closely monitoring and potentially improving its inventory management to ensure optimal levels of inventory turnover and operational efficiency.
Peer comparison
Jan 31, 2024