Nordson Corporation (NDSN)
Payables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,099,020 | 2,021,850 | 1,945,130 | 1,804,560 | 1,835,620 |
| Payables | US$ in thousands | 97,839 | 106,320 | 99,276 | 91,689 | 70,949 |
| Payables turnover | 21.45 | 19.02 | 19.59 | 19.68 | 25.87 |
October 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,099,020K ÷ $97,839K
= 21.45
Nordson Corporation's payables turnover ratio has shown a fluctuating trend over the past five years. The company's ability to manage its payables effectively improved significantly in 2020 with a ratio of 25.87, indicating that it paid off its suppliers approximately 25.87 times during that year. However, this ratio decreased in the subsequent years, reaching a low of 19.02 in 2023 before slightly rebounding to 21.45 in 2024.
A high payables turnover ratio typically suggests that a company is efficiently managing its payables by paying its suppliers promptly. Conversely, a lower ratio may indicate that the company is taking longer to pay its obligations, potentially straining relationships with suppliers.
Overall, Nordson Corporation's payables turnover ratio has been relatively stable over the years, albeit with some fluctuations. Further analysis and comparison with industry benchmarks could provide additional insights into the company's payables management efficiency.
Peer comparison
Oct 31, 2024