Nordson Corporation (NDSN)
Fixed asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,688,450 | 2,568,040 | 2,568,450 | 2,336,130 | 2,088,460 |
| Property, plant and equipment | US$ in thousands | 544,607 | 392,846 | 353,442 | 355,565 | 358,618 |
| Fixed asset turnover | 4.94 | 6.54 | 7.27 | 6.57 | 5.82 |
October 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,688,450K ÷ $544,607K
= 4.94
Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. Nordson Corporation's fixed asset turnover has shown fluctuations over the past five years. The ratio decreased from 5.82 in 2020 to 4.94 in 2024 before increasing slightly to 6.54 in 2023 and then significantly to 7.27 in 2022. However, it dropped again to 6.57 in 2021.
A high fixed asset turnover indicates that Nordson is efficiently using its fixed assets to generate sales, which is generally a positive sign. The increase in the ratio from 2020 to 2022 could indicate improved operational efficiency or better asset management during these years. The subsequent decrease in 2021 and 2024, however, may suggest a decline in asset utilization efficiency.
It is important for Nordson to further analyze the reasons behind these fluctuations in fixed asset turnover to identify any potential areas for improvement in asset utilization and operational efficiency.
Peer comparison
Oct 31, 2024