Nordson Corporation (NDSN)
Receivables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,568,040 | 2,568,450 | 2,336,130 | 2,088,460 | 2,146,130 |
| Receivables | US$ in thousands | 590,886 | 537,313 | 489,389 | 471,873 | 530,765 |
| Receivables turnover | 4.35 | 4.78 | 4.77 | 4.43 | 4.04 |
October 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,568,040K ÷ $590,886K
= 4.35
The receivables turnover ratio measures how efficient a company is at collecting cash from its credit sales. Nordson Corp.'s receivables turnover has been relatively stable over the past five years, ranging from 4.13 to 4.83. A higher turnover ratio generally indicates that the company is collecting its receivables more quickly, which can signify strong liquidity and effective credit policies. Nordson Corp.'s receivables turnover ratios indicate that it has been consistently effective in converting its credit sales into cash over the years, reflecting efficient management of its accounts receivable. However, the slight decline in the ratio from 2022 to 2023 may suggest a lengthening in the collection period of receivables, warranting further investigation into the company's credit and collection practices.
Peer comparison
Oct 31, 2023