Nordson Corporation (NDSN)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,099,020 | 2,021,850 | 1,945,130 | 1,804,560 | 1,835,620 |
| Inventory | US$ in thousands | 476,935 | 454,775 | 383,398 | 327,195 | 277,033 |
| Inventory turnover | 4.40 | 4.45 | 5.07 | 5.52 | 6.63 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,099,020K ÷ $476,935K
= 4.40
Nordson Corporation's inventory turnover has exhibited a decreasing trend over the past five years, declining from 6.63 in 2020 to 4.40 in 2024. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in managing and selling its inventory levels. A lower inventory turnover ratio may also signify excess inventory levels, slow sales, or obsolescence of products. It is crucial for Nordson to closely monitor and optimize its inventory management processes to improve its inventory turnover ratio and efficiency in utilizing its resources effectively.
Peer comparison
Oct 31, 2024