Nordson Corporation (NDSN)
Inventory turnover
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,034,866 | 2,021,851 | 1,988,255 | 1,986,571 | 1,958,870 | 1,945,131 | 1,887,226 | 1,868,570 | 1,840,332 | 1,804,562 | 1,870,168 | 1,843,387 | 1,828,531 | 1,835,620 | 1,762,016 | 1,760,907 | 1,776,355 | 1,765,903 | 1,568,418 | 1,385,812 |
| Inventory | US$ in thousands | 451,217 | 454,775 | 439,741 | 440,179 | 447,727 | 383,398 | 399,579 | 383,215 | 366,380 | 327,195 | 303,977 | 295,841 | 282,440 | 277,033 | 310,557 | 312,118 | 294,768 | 283,399 | 282,614 | 280,733 |
| Inventory turnover | 4.51 | 4.45 | 4.52 | 4.51 | 4.38 | 5.07 | 4.72 | 4.88 | 5.02 | 5.52 | 6.15 | 6.23 | 6.47 | 6.63 | 5.67 | 5.64 | 6.03 | 6.23 | 5.55 | 4.94 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,034,866K ÷ $451,217K
= 4.51
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory level. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally seen as positive.
Analyzing Nordson Corp.'s inventory turnover over the past eight quarters, we can see that the ratio has fluctuated within a relatively narrow range, with values ranging from 2.63 to 3.04. This suggests that Nordson Corp. has been able to consistently manage its inventory turnover over the period in question.
On average, Nordson Corp.'s inventory turnover ratio stands at approximately 2.77 over the last eight quarters. This implies that, on average, the company has been able to sell and replace its inventory approximately 2.77 times per year.
It is important for Nordson Corp. to monitor its inventory turnover ratio closely to ensure that it is neither overstocking nor understocking its inventory. While Nordson Corp.'s inventory turnover ratio appears to be within a reasonable range, further analysis into industry benchmarks and historical trends may provide additional insights into the company's inventory management efficiency.
Peer comparison
Jan 31, 2024
Jan 31, 2024