Nordson Corporation (NDSN)
Inventory turnover
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,099,021 | 2,066,157 | 2,044,012 | 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 |
| Inventory | US$ in thousands | 476,935 | 438,167 | 443,578 | 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 |
| Inventory turnover | 4.40 | 4.72 | 4.61 | 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 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,099,021K ÷ $476,935K
= 4.40
The inventory turnover ratio of Nordson Corporation has remained relatively stable over the past few years, ranging between 4.38 and 6.63. The company's inventory turnover indicates how efficiently it is managing its inventory levels by converting inventory into sales.
A higher inventory turnover ratio generally indicates that Nordson is selling goods more quickly and has minimal excess inventory, which can positively impact profitability and cash flow. In this case, we observe an increasing trend in the inventory turnover ratio from 2020 to 2022, peaking at 6.47 in January 2021.
However, there was a slight dip in the ratio in the following quarters, but the ratios generally stayed above 4.5, reflecting decent inventory management practices. Nordson should continue to monitor and optimize its inventory levels to ensure efficient operations and maximize financial performance.
Peer comparison
Oct 31, 2024
Oct 31, 2024