Nordson Corporation (NDSN)
Payables 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 |
| Payables | US$ in thousands | 97,839 | 98,305 | 103,202 | 103,153 | 106,320 | 105,075 | 85,408 | 90,602 | 99,276 | 100,397 | 96,948 | 96,503 | 91,689 | 92,924 | 84,824 | 74,148 | 70,949 | 71,355 | 79,785 | 78,087 |
| Payables turnover | 21.45 | 21.02 | 19.81 | 19.73 | 19.02 | 18.92 | 23.26 | 21.62 | 19.59 | 18.80 | 19.27 | 19.07 | 19.68 | 20.13 | 21.73 | 24.66 | 25.87 | 24.69 | 22.07 | 22.75 |
October 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,099,021K ÷ $97,839K
= 21.45
The payables turnover ratio, which measures how efficiently a company is managing its accounts payable, has shown some fluctuations for Nordson Corporation over the past few years.
The payables turnover ratio for Nordson has ranged from a low of 18.80 to a high of 25.87 over the last two years. In general, a higher turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign of strong liquidity and effective cash management. Nordson's payables turnover has generally been on the higher side, reflecting efficient management of its accounts payable.
However, it's important to note that the payables turnover ratio should be assessed in conjunction with other financial metrics to get a comprehensive understanding of the company's financial health. Fluctuations in the payables turnover ratio may also be influenced by changes in the company's payment terms, business operations, or industry conditions.
Overall, Nordson Corporation's payables turnover ratio has shown a generally positive trend, indicating effective management of its accounts payable over the analyzed period.
Peer comparison
Oct 31, 2024