Nordson Corporation (NDSN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 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 6.23 5.55 4.94
Receivables turnover 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 4.06 4.28 4.44
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
Working capital turnover 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 4.04 3.99 4.19

The activity ratios for Nordson Corp. provide insights into the efficiency of the company's operations in managing inventory, receivables, payables, and working capital.

- Inventory turnover has been relatively stable over the quarters, indicating that Nordson is efficiently managing its inventory levels. A moderate inventory turnover ratio suggests that it takes approximately 2.5 to 3 months for the company to sell its inventory.

- Receivables turnover has shown some fluctuation but remains at a healthy level. This indicates that Nordson is collecting its receivables efficiently, with a turnover of around 4 to 5 times per year.

- Payables turnover has been relatively consistent, with a higher turnover indicating that Nordson is paying its suppliers promptly. A higher turnover ratio means that the company is efficient in managing its trade payables.

- Working capital turnover has shown significant variations, with a notable spike in Q2 2023. This ratio measures how effectively Nordson is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is using its resources efficiently to generate sales.

Overall, the activity ratios suggest that Nordson Corp. is effectively managing its inventory, receivables, payables, and working capital to support its operations and generate sales.

Average number of days

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
Days of inventory on hand (DOH) days 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 58.58 65.77 73.94
Days of sales outstanding (DSO) days 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 89.83 85.26 82.25
Number of days of payables days 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 17.60 19.91 24.50

Based on the activity ratios of Nordson Corp., we observe the following trends:

1. Days of Inventory on Hand (DOH): Nordson Corp. has shown fluctuations in its inventory management over the quarters, with DOH ranging from 120.25 days to 138.93 days. The company maintained an average level of inventory days, indicating a moderate efficiency in managing its inventory levels during the periods.

2. Days of Sales Outstanding (DSO): The DSO of Nordson Corp. has been relatively consistent, fluctuating between 73.21 days and 82.05 days. The company is collecting its receivables within a reasonable timeframe, demonstrating effective credit management practices and timely collection efforts.

3. Number of Days of Payables: Nordson Corp. has managed its payables efficiently, with the number of days ranging from 26.05 days to 32.97 days. The company appears to have a stable payment cycle, balancing its cash flow needs with its obligations to suppliers.

Overall, Nordson Corp. is maintaining a balanced approach to managing its working capital components, with efficient inventory management, effective receivables collection, and prudent payables management practices. Continued monitoring of these activity ratios will provide insights into the company's operational efficiency and working capital management strategies.

Long-term

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
Fixed asset turnover 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 5.41 5.46 5.63
Total asset turnover 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 0.61 0.61 0.63

The fixed asset turnover ratio for Nordson Corp. has been relatively stable over the quarters, with values ranging from 6.69 to 7.39. This indicates that the company generates approximately $7.00 in sales for every $1.00 invested in fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown more variability, ranging from 0.50 to 0.68. This ratio reveals that Nordson Corp. generates sales of approximately $0.50 to $0.68 for every $1.00 invested in total assets. A declining total asset turnover ratio could indicate inefficiencies in asset utilization or potential underperformance in generating revenue from its total asset base.

Overall, both ratios provide insights into Nordson Corp.'s efficiency in utilizing its fixed and total assets to generate sales. A consistent or improving trend in these ratios may signify effective asset management and operational performance, while a declining trend may warrant further investigation into the company's asset utilization strategies.