Nordson Corporation (NDSN)
Payables 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 |
| Payables | US$ in thousands | 106,320 | 99,276 | 91,689 | 70,949 | 85,139 |
| Payables turnover | 19.02 | 19.59 | 19.68 | 25.87 | 20.74 |
October 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,021,850K ÷ $106,320K
= 19.02
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to average accounts payable for a certain period. A higher turnover ratio indicates that the company is paying its suppliers more frequently.
Looking at Nordson Corp.'s payables turnover ratio over the past five years, we can observe fluctuations. In 2023, the ratio was 11.32, a decrease from 11.72 in 2022. This suggests that the company took longer to pay its suppliers in 2023 compared to 2022. However, when compared to 2021, the ratio remained unchanged at 11.32. This may indicate stability in the company's payables management efficiency.
In 2020, the payables turnover ratio dipped to 13.96, indicating that the company paid its suppliers more frequently compared to the previous year. However, in 2019, the ratio decreased to 11.77, indicating a longer payment period.
Overall, Nordson Corp.'s payables turnover ratio has shown variability over the past five years, with some years exhibiting more efficient management of accounts payable than others. It is essential for investors and stakeholders to monitor this trend to understand the company's ability to manage its payables effectively.
Peer comparison
Oct 31, 2023