Nordson Corporation (NDSN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,156,514 | 2,140,358 | 2,173,355 |
| Total current assets | US$ in thousands | 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 | 1,011,200 | 980,740 | 964,937 |
| Total current liabilities | US$ in thousands | 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 | 477,626 | 444,222 | 446,491 |
| 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 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,581,455K ÷ ($1,208,110K – $551,680K)
= 3.93
The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in using working capital.
Looking at the trend in Nordson Corp.'s working capital turnover ratio over the past eight quarters, we can observe some fluctuations. The ratio ranged from 4.00 to 15.79 during this period.
In Q2 2023, Nordson Corp. experienced an unusually high working capital turnover ratio of 15.79, which may suggest that the company effectively managed its working capital to generate sales during that quarter. However, it is essential to investigate further to understand the reasons behind this significant spike.
Overall, the working capital turnover ratio for Nordson Corp. has generally been quite healthy, with most quarters showing a ratio above 4. This indicates that the company has been efficient in utilizing its working capital to support its sales activities. Further analysis and comparison with industry benchmarks could provide more insights into Nordson Corp.'s working capital management efficiency.
Peer comparison
Jan 31, 2024