Nordson Corporation (NDSN)
Number of days of payables
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 21.45 | 19.02 | 19.59 | 19.68 | 25.87 | |
| Number of days of payables | days | 17.01 | 19.19 | 18.63 | 18.55 | 14.11 |
October 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 21.45
= 17.01
Nordson Corporation's number of days of payables has been relatively stable over the past five years, ranging from 14.11 days in 2020 to 19.19 days in 2023. A lower number of days of payables indicates that the company takes less time to pay its suppliers, which can be advantageous in terms of maintaining positive supplier relationships and potentially negotiating better payment terms.
In this case, the decreasing trend in the number of days of payables from 2020 to 2023 suggests that Nordson Corporation may have been managing its payables more efficiently during those years. However, the slight increase in 2024 to 17.01 days indicates that the company may be taking slightly longer to pay its suppliers compared to the previous year. It is important for Nordson Corporation to monitor its payables closely to ensure that it strikes the right balance between managing its cash flow effectively and maintaining positive relationships with suppliers.
Peer comparison
Oct 31, 2024