Nordson Corporation (NDSN)
Inventory turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,021,850 | 1,945,130 | 1,804,560 | 1,835,620 | 1,765,900 |
| Inventory | US$ in thousands | 454,775 | 383,398 | 327,195 | 277,033 | 283,399 |
| Inventory turnover | 4.45 | 5.07 | 5.52 | 6.63 | 6.23 |
October 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,021,850K ÷ $454,775K
= 4.45
The inventory turnover for Nordson Corp. has shown a decreasing trend over the past five years. The ratio decreased from 3.54 in 2019 to 2.65 in 2023. This indicates that the company's ability to manage and sell its inventory efficiently has weakened over the years. A declining inventory turnover ratio may suggest issues related to excess inventory levels, slow-moving inventory, or inefficient inventory management processes. Nordson Corp. should focus on optimizing its inventory management practices to improve its inventory turnover and enhance working capital efficiency.
Peer comparison
Oct 31, 2023