Nordson Corporation (NDSN)
Receivables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,688,450 | 2,568,040 | 2,568,450 | 2,336,130 | 2,088,460 |
| Receivables | US$ in thousands | 594,663 | 590,886 | 537,313 | 489,389 | 471,873 |
| Receivables turnover | 4.52 | 4.35 | 4.78 | 4.77 | 4.43 |
October 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,688,450K ÷ $594,663K
= 4.52
Nordson Corporation's receivables turnover over the past five years has been relatively consistent, ranging from 4.35 to 4.78 times. The company has been able to collect its accounts receivable approximately 4 to 5 times a year during this period. A higher receivables turnover ratio indicates a shorter collection period, reflecting efficient management of receivables and potentially better liquidity. Nordson's receivables turnover has been stable and suggests that the company has maintained effective credit policies and collection procedures in place. However, it would be beneficial to compare this ratio with industry benchmarks to gain a better understanding of Nordson's performance relative to its peers in managing its accounts receivable.
Peer comparison
Oct 31, 2024