Nordson Corporation (NDSN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 4.40 4.72 4.61 4.51 4.45 4.52 4.51 4.38 5.07 4.72 4.88 5.02 5.52 6.15 6.23 6.47 6.63 5.67 5.64 6.03
Receivables turnover 4.45 4.82 4.85 4.80 4.35 4.79 4.88 4.69 4.78 4.68 4.94 5.20 4.77 4.45 4.66 4.68 4.44 4.26 4.51 4.57
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
Working capital turnover 3.55 3.68 3.96 3.93 3.97 3.94 15.60 7.26 8.59 8.61 7.32 3.87 3.25 3.68 3.88 3.19 3.19 2.89 2.73 3.68

Nordson Corporation's inventory turnover has been relatively stable, hovering around 4.5 to 5 times per year over the past two years. This indicates that the company is efficiently managing its inventory levels, converting its inventory into sales multiple times throughout the year.

The receivables turnover ratio has shown some fluctuations but generally remains within the range of 4.3 to 5.2 times per year. This suggests that Nordson is effective in collecting payments from its customers, with a reasonable frequency of turnover in its accounts receivable.

Nordson's payables turnover ratio has shown a more consistent trend, ranging from 18.8 to 25.9 times per year over the past two years. This indicates that the company is effectively managing its accounts payable, with a relatively high turnover rate, potentially benefiting from favorable credit terms with its suppliers.

The working capital turnover ratio has displayed some variability, with a more significant spike in the Q2 of 2023. This may be a result of particular business activities during that period. Overall, the ratio has been relatively stable, showing Nordson's ability to efficiently utilize its working capital to generate sales.

In summary, Nordson Corporation has generally exhibited strong efficiency in managing its inventory, receivables, payables, and working capital turnover, demonstrating effective operational performance in these areas.

Average number of days

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
Days of inventory on hand (DOH) days 82.93 77.41 79.21 80.94 82.10 80.73 80.88 83.43 71.94 77.28 74.86 72.67 66.18 59.33 58.58 56.38 55.09 64.33 64.70 60.57
Days of sales outstanding (DSO) days 81.97 75.70 75.26 76.03 83.93 76.27 74.84 77.81 76.38 78.00 73.88 70.23 76.46 81.96 78.40 78.04 82.19 85.69 81.00 79.79
Number of days of payables days 17.01 17.37 18.43 18.50 19.19 19.29 15.69 16.88 18.63 19.42 18.94 19.14 18.55 18.14 16.80 14.80 14.11 14.78 16.54 16.05

Nordson Corporation's activity ratios provide insights into the efficiency with which the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): Nordson's DOH has shown some variability over the past few quarters, ranging from a low of 56.38 days to a high of 83.43 days. An increasing trend in DOH can indicate slower inventory turnover, tying up capital in unsold inventory. However, Nordson's DOH has remained relatively stable, indicating a consistent inventory management strategy.

2. Days of Sales Outstanding (DSO): Nordson's DSO has ranged from 70.23 days to 85.69 days over the periods analyzed. A higher DSO suggests a longer time taken to collect receivables, potentially impacting the company's cash flow. Nordson's DSO has shown some fluctuations, indicating variability in the efficiency of its credit and collections policies.

3. Number of Days of Payables: Nordson's days of payables have hovered between 14.11 days and 19.29 days. A lower number of days of payables suggests that Nordson is paying its suppliers more quickly. It can indicate strong relationships with suppliers but may also signal potential cash flow challenges if payments are made too quickly.

Overall, Nordson Corporation's activity ratios reflect a balanced approach to managing its working capital. The company should continue to monitor and optimize these ratios to ensure efficient operations and maintain healthy cash flows.

Long-term

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
Fixed asset turnover 4.86 6.47 6.50 6.54 6.54 7.28 7.26 7.09 7.26 6.91 6.90 6.69 6.57 6.42 6.04 5.94 5.84 5.11 5.35 5.39
Total asset turnover 0.44 0.50 0.50 0.49 0.49 0.61 0.61 0.61 0.67 0.65 0.65 0.63 0.62 0.63 0.61 0.58 0.57 0.56 0.57 0.61

Nordson Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company in utilizing its assets to generate sales.

The fixed asset turnover ratio has shown a relatively consistent trend over the periods analyzed, ranging from 4.86 to 7.28. This indicates that Nordson has been effectively utilizing its fixed assets to generate sales, with higher ratios suggesting better efficiency in generating revenue from its investment in fixed assets.

On the other hand, the total asset turnover ratio has also exhibited a consistent pattern, ranging from 0.44 to 0.67. The decreasing trend in the total asset turnover ratio suggests that Nordson may be experiencing challenges in efficiently utilizing all its assets, including both fixed and current assets, to generate sales over time.

Overall, Nordson Corporation's fixed asset turnover ratio indicates good efficiency in generating sales from its investment in fixed assets, while the downward trend in the total asset turnover ratio suggests that the company may need to focus on improving the overall efficiency of its asset utilization to enhance its revenue generation in the long term.