Nordson Corporation (NDSN)
Payables turnover
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,765,903 | 1,568,418 | 1,385,812 |
| Payables | US$ in thousands | 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 | 85,139 | 85,565 | 93,039 |
| Payables turnover | 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 | 20.74 | 18.33 | 14.89 |
January 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,034,866K ÷ $103,153K
= 19.73
Nordson Corp.'s payables turnover ratio has shown a relatively stable trend over the last eight quarters, ranging from 11.07 to 14.01. The payables turnover ratio measures how efficiently a company is managing its payable obligations by determining how many times it pays off its accounts payable during a period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a sign of good liquidity and strong vendor relationships. Nordson Corp.'s payables turnover has been consistently above 10, which suggests that the company is efficiently managing its accounts payable.
The slight fluctuations in the payables turnover ratio over the quarters may be attributed to changes in the company's payment terms, purchasing practices, or overall business operations. Overall, Nordson Corp.'s payables turnover ratio indicates effective management of its payables, contributing to a healthy working capital management.
Peer comparison
Jan 31, 2024