Nordson Corporation (NDSN)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.45 | 4.82 | 4.85 | 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 | |
| DSO | days | 81.97 | 75.70 | 75.26 | 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 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.45
= 81.97
The days of sales outstanding (DSO) for Nordson Corporation have shown some fluctuations over the past several periods. DSO represents the average number of days it takes for a company to collect its accounts receivable, thus providing insights into its efficiency in collecting funds owed by customers.
From Oct 31, 2020, to Oct 31, 2024, the DSO ranged from a low of 70.23 days to a high of 85.69 days. Despite some variation, the trend indicates that Nordson Corporation has typically maintained its DSO within a relatively stable range over this period.
The recent DSO figures have shown a slight increase, with the latest reported DSO at 81.97 days as of Oct 31, 2024. This suggests that Nordson Corporation may be taking slightly longer to collect its accounts receivable compared to the prior quarters.
It is important for Nordson Corporation to closely monitor its DSO and strive to keep it at an optimal level. A higher DSO can indicate potential issues with collections and cash flow management, while a lower DSO may signify efficient credit and collection processes. By analyzing trends and benchmarking against industry standards, Nordson Corporation can make informed decisions to enhance its working capital management and overall financial performance.
Peer comparison
Oct 31, 2024