Nordson Corporation (NDSN)
Days of sales outstanding (DSO)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.52 | 4.35 | 4.78 | 4.77 | 4.43 | |
| DSO | days | 80.73 | 83.98 | 76.36 | 76.46 | 82.47 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.52
= 80.73
Based on the data provided for Nordson Corporation's days of sales outstanding (DSO) over the past five years, we can observe fluctuations in the efficiency of the company's accounts receivable management. DSO represents the average number of days it takes for the company to collect payments from its customers.
In 2024, Nordson's DSO stood at 80.73 days, a decrease from the previous year's 83.98 days. This indicates an improvement in the collection of receivables compared to the previous year. However, it is important to note that DSO is still higher than the levels seen in 2022 and 2021, which were 76.36 days and 76.46 days, respectively.
The comparison to the DSO level in 2020, which was 82.47 days, shows a favorable trend in receivables management over the past three years. Nordson's ability to collect payments from customers has improved, albeit with some variability.
Overall, Nordson Corporation's DSO trend indicates fluctuations in the efficiency of accounts receivable management, with some improvements in recent years. Further analysis of the underlying factors influencing DSO, such as changes in sales terms, customer payment behavior, and credit policies, would provide a more in-depth understanding of the company's receivables performance.
Peer comparison
Oct 31, 2024