Nordson Corporation (NDSN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,647,909 | 2,596,752 | 2,571,736 | 2,581,455 | 2,569,649 | 2,554,567 | 2,574,370 | 2,564,160 | 2,567,546 | 2,483,661 | 2,467,989 | 2,420,346 | 2,336,296 | 2,300,916 | 2,191,064 | 2,129,850 | 2,095,644 | 2,122,570 | 2,139,949 | 2,157,511 |
| Total current assets | US$ in thousands | 1,275,030 | 1,224,140 | 1,185,590 | 1,208,110 | 1,229,310 | 1,176,920 | 1,155,440 | 1,178,420 | 1,132,970 | 1,115,610 | 1,059,840 | 1,054,240 | 1,164,840 | 1,045,760 | 949,425 | 1,028,130 | 1,020,610 | 1,080,700 | 1,143,280 | 930,324 |
| Total current liabilities | US$ in thousands | 528,477 | 518,267 | 536,011 | 551,680 | 582,089 | 528,609 | 990,392 | 825,461 | 834,203 | 827,282 | 722,498 | 429,467 | 445,394 | 420,822 | 385,267 | 359,609 | 363,089 | 347,218 | 360,189 | 343,321 |
| 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 |
October 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,647,909K ÷ ($1,275,030K – $528,477K)
= 3.55
The working capital turnover ratio for Nordson Corporation has fluctuated over the past several quarters. The trend shows variations in how efficiently the company is utilizing its working capital to generate sales revenue. In the latest quarter, the ratio was 3.55, indicating that Nordson generated $3.55 in revenue for every dollar of working capital invested.
The highest working capital turnover ratio observed was 15.60 in April 2023, which may have been due to a combination of factors such as significant sales growth or more effective management of working capital components. Conversely, the lowest ratio of 2.73 in January 2020 suggests that Nordson was less efficient in utilizing its working capital during that period.
Overall, the working capital turnover ratio for Nordson Corporation has shown some volatility but generally reflects the company's ability to efficiently convert its working capital into sales revenue. Further analysis and comparison with industry benchmarks can provide additional insights into Nordson's working capital management effectiveness.
Peer comparison
Oct 31, 2024