Nordson Corporation (NDSN)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.80 | 4.35 | 4.79 | 4.88 | 4.69 | 4.78 | 4.68 | 4.94 | 5.20 | 4.77 | 4.45 | 4.66 | 4.68 | 4.44 | 4.26 | 4.51 | 4.57 | 4.06 | 4.28 | 4.44 | |
| DSO | days | 76.03 | 83.93 | 76.27 | 74.84 | 77.81 | 76.38 | 78.00 | 73.88 | 70.23 | 76.46 | 81.96 | 78.40 | 78.04 | 82.19 | 85.69 | 81.00 | 79.79 | 89.83 | 85.26 | 82.25 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.80
= 76.03
To analyze Nordson Corp.'s days of sales outstanding (DSO) over the past eight quarters, we observe fluctuations in the DSO ratio. DSO represents the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates faster collections and better liquidity, while a higher DSO implies delayed collections and potential cash flow challenges.
From Q2 2022 to Q1 2024, Nordson Corp.'s DSO has ranged from 73.21 days to 82.05 days, exhibiting some variability. In Q4 2023, the DSO peaked at 82.05 days, representing a slower collection period, possibly indicating difficulties in collecting payments efficiently. This was preceded by a lower DSO in Q3 2023 at 75.14 days.
Despite the fluctuations, Nordson Corp. generally maintained its DSO within a relatively consistent range, showing a focus on managing accounts receivable effectively. The company's ability to optimize collections processes and maintain a stable DSO reflects its efficiency in managing working capital and securing timely cash inflows from sales.
Overall, Nordson Corp.'s DSO trend signals the importance of monitoring and managing receivables closely to ensure steady cash flow and financial stability.
Peer comparison
Jan 31, 2024