Nordson Corporation (NDSN)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 138.46 | 146.84 | 137.71 | 140.02 | 144.36 | 129.70 | 135.86 | 129.80 | 123.76 | 124.09 | 123.15 | 120.18 | 119.62 | 123.16 | 135.24 | 129.16 | 124.31 | 130.81 | 131.12 | 131.68 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.94 + 76.03 – 18.50
= 138.46
The cash conversion cycle of Nordson Corp. has experienced fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle was 179.33 days, showing an improvement from Q4 2023 where it was 187.75 days. However, compared to Q3 2023 and Q2 2023, the cash conversion cycle was slightly higher at 177.93 days and 182.14 days respectively.
Looking back further, in Q1 2023 and Q4 2022, the cash conversion cycle was relatively high at 187.80 days and 164.83 days, indicating inefficiencies in managing cash flow. The company showed some progress in Q3 2022 and Q2 2022 with the cash conversion cycle at 175.56 days and 168.50 days, suggesting better management of working capital during those periods.
Overall, Nordson Corp. has demonstrated some variability in its cash conversion cycle performance, showing potential areas for improvement in managing its receivables, inventory, and payables to optimize cash flow efficiency.
Peer comparison
Jan 31, 2024