Nordson Corporation (NDSN)
Fixed asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,568,040 | 2,568,450 | 2,336,130 | 2,088,460 | 2,146,130 |
| Property, plant and equipment | US$ in thousands | 392,846 | 353,442 | 355,565 | 358,618 | 398,895 |
| Fixed asset turnover | 6.54 | 7.27 | 6.57 | 5.82 | 5.38 |
October 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,568,040K ÷ $392,846K
= 6.54
The fixed asset turnover ratio measures the efficiency with which Nordson Corp. generates sales revenue from its investment in fixed assets. A higher ratio typically indicates better utilization of fixed assets to generate sales.
From 2019 to 2023, Nordson Corp.'s fixed asset turnover has shown a generally increasing trend, peaking at 7.33 in 2022 before decreasing slightly to 6.69 in 2023. This indicates that the company has been able to generate more sales relative to its investment in fixed assets, reflecting improved operational efficiency.
The increase in the fixed asset turnover ratio suggests that Nordson Corp. has been effectively utilizing its fixed assets to drive sales growth and improve productivity. This trend is a positive sign of the company's operational efficiency and effectiveness in managing its fixed assets to generate revenue.
Peer comparison
Oct 31, 2023