Northern Trust Operating Margin vs. Return On Asset

NTRS Stock  USD 108.94  1.06  0.98%   
Based on Northern Trust's profitability indicators, Northern Trust is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess Northern Trust's ability to earn profits and add value for shareholders.

Northern Trust Operating Profit Margin

0.21

At this time, Northern Trust's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 149.23 in 2024, whereas EV To Sales is likely to drop 2.03 in 2024. At this time, Northern Trust's Total Other Income Expense Net is comparatively stable compared to the past year. Net Income From Continuing Ops is likely to gain to about 1.2 B in 2024, whereas Operating Income is likely to drop slightly above 995.8 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.730.89
Significantly Down
Slightly volatile
Net Profit Margin0.170.1635
Sufficiently Up
Pretty Stable
Operating Profit Margin0.210.2163
Fairly Down
Pretty Stable
Pretax Profit Margin0.230.2163
Notably Up
Very volatile
Return On Assets0.01090.0073
Way Up
Slightly volatile
Return On Equity0.150.0931
Way Up
Very volatile
For Northern Trust profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northern Trust to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northern Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northern Trust's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northern Trust over time as well as its relative position and ranking within its peers.
  

Northern Trust's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more information on how to buy Northern Stock please use our How to Invest in Northern Trust guide.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northern Trust. If investors know Northern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northern Trust listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.49
Dividend Share
3
Earnings Share
8.03
Revenue Per Share
38.612
Quarterly Revenue Growth
0.145
The market value of Northern Trust is measured differently than its book value, which is the value of Northern that is recorded on the company's balance sheet. Investors also form their own opinion of Northern Trust's value that differs from its market value or its book value, called intrinsic value, which is Northern Trust's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northern Trust's market value can be influenced by many factors that don't directly affect Northern Trust's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northern Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northern Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northern Trust's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Northern Trust Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Northern Trust's current stock value. Our valuation model uses many indicators to compare Northern Trust value to that of its competitors to determine the firm's financial worth.
Northern Trust is regarded fourth in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.04  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Northern Trust is roughly  27.38 . At this time, Northern Trust's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Northern Trust by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Northern Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Northern Trust

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.31 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Northern Trust

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0112
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Northern Return On Asset Comparison

Northern Trust is currently under evaluation in return on asset category among its peers.

Northern Trust Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Northern Trust, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northern Trust will eventually generate negative long term returns. The profitability progress is the general direction of Northern Trust's change in net profit over the period of time. It can combine multiple indicators of Northern Trust, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.1 B-1.1 B
Operating Income1.5 B995.8 M
Net Income1.1 B733 M
Income Tax Expense357.5 M269 M
Income Before Tax1.5 BB
Total Other Income Expense Net1.5 B1.5 B
Net Income Applicable To Common Shares1.5 B921.8 M
Net Income From Continuing Ops1.1 B1.2 B
Net Interest IncomeB1.7 B
Interest Income7.3 B7.7 B
Non Operating Income Net Other-900 K-945 K
Change To Netincome-492.7 M-468 M
Net Income Per Share 5.34  5.61 
Income Quality 2.37  2.49 
Net Income Per E B T 0.76  0.77 

Northern Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Northern Trust. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northern Trust position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northern Trust's important profitability drivers and their relationship over time.

Use Northern Trust in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Northern Trust position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northern Trust will appreciate offsetting losses from the drop in the long position's value.

Northern Trust Pair Trading

Northern Trust Pair Trading Analysis

The ability to find closely correlated positions to Northern Trust could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northern Trust when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Northern Trust - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Northern Trust to buy it.
The correlation of Northern Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Northern Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northern Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Northern Trust can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Northern Trust position

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Consumer Staples ETFs
Consumer Staples ETFs Theme
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Additional Tools for Northern Stock Analysis

When running Northern Trust's price analysis, check to measure Northern Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northern Trust is operating at the current time. Most of Northern Trust's value examination focuses on studying past and present price action to predict the probability of Northern Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northern Trust's price. Additionally, you may evaluate how the addition of Northern Trust to your portfolios can decrease your overall portfolio volatility.