Nordson Corporation (NDSN)
Number of days of payables
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 19.02 | 19.59 | 19.68 | 25.87 | 20.74 | |
| Number of days of payables | days | 19.19 | 18.63 | 18.55 | 14.11 | 17.60 |
October 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 19.02
= 19.19
To analyze Nordson Corp.'s number of days of payables, we can observe that the number of days of payables increased to 32.25 days in October 2023 from 31.14 days in October 2022. This indicates that the company took longer to pay its suppliers in 2023 compared to 2022. However, it's important to highlight that the number of days of payables has shown some fluctuations over the past five years; it was 32.24 days in 2021, 26.14 days in 2020, and 31.01 days in 2019.
This upward trend in the number of days of payables suggests that Nordson Corp. has been taking longer to settle its payables over the years. An increase in the number of days of payables could imply either a deliberate strategy to optimize cash flow or a potential inefficiency in managing payables. Further analysis, including comparing this trend to industry benchmarks and the company's financial performance, is necessary to fully understand the implications of these changes in the number of days of payables for Nordson Corp.
Peer comparison
Oct 31, 2023