Northern Trust Gross Profit vs. Profit Margin

NTRSO Preferred Stock  USD 21.43  0.17  0.79%   
Based on Northern Trust's profitability indicators, Northern Trust may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess Northern Trust's ability to earn profits and add value for shareholders.
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.
To learn how to invest in Northern Preferred Stock, please use our How to Invest in Northern Trust guide.
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 Profit Margin vs. Gross Profit 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 considered to be number one stock in gross profit category among its peers. It also is considered to be number one stock in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for Northern Trust is about  34,086,868,687 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Northern Trust by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northern Trust's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Northern Profit Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Northern Trust

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
6.75 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Northern Trust

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.20 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Northern Profit Margin Comparison

Northern Trust is currently under evaluation in profit margin 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.
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. The company was founded in 1889 and is headquartered in Chicago, Illinois. Northern Trust operates under Asset Management classification in the United States and is traded on NASDAQ Exchange. It employs 23100 people.

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

In addition to having Northern Trust in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Corporate Bonds Funds Thematic Idea Now

Corporate Bonds Funds
Corporate Bonds Funds Theme
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds Funds theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate Bonds Funds Theme or any other thematic opportunities.
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Other Information on Investing in Northern Preferred Stock

To fully project Northern Trust's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northern Trust at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northern Trust's income statement, its balance sheet, and the statement of cash flows.
Potential Northern Trust investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Northern Trust investors may work on each financial statement separately, they are all related. The changes in Northern Trust's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northern Trust's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.