Nordson Corporation (NDSN)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.92% | 21.27% | 24.27% | 22.75% | 54.13% |
| Operating profit margin | 25.07% | 26.20% | 27.35% | 26.33% | 16.74% |
| Pretax margin | 21.78% | 23.96% | 25.28% | 24.58% | 14.44% |
| Net profit margin | 17.38% | 18.98% | 19.98% | 19.45% | 11.95% |
Based on the provided profitability ratios for Nordson Corporation, we can observe the following trends:
1. Gross Profit Margin:
- There has been fluctuation in the gross profit margin over the past five years, with a drastic decrease in 2020 followed by a gradual recovery in the following years.
- The company's gross profit margin ranged from a low of 21.27% in 2023 to a high of 54.13% in 2020, indicating a significant variability in the cost of goods sold relative to revenue during this period.
2. Operating Profit Margin:
- Nordson Corporation has maintained relatively stable operating profit margins over the past five years, with minor fluctuations but no drastic changes.
- The operating profit margin ranged from 25.07% in 2024 to 16.74% in 2020, showing a consistent operational performance in generating profits from its core business activities.
3. Pretax Margin:
- The pretax margin reflects a similar pattern to the operating profit margin, remaining relatively steady with minor variations from year to year.
- Nordson Corporation's pretax margin ranged from 21.78% in 2024 to 14.44% in 2020, demonstrating consistency in the company's ability to generate profits before considering taxes.
4. Net Profit Margin:
- The net profit margin, measuring the company's bottom-line profitability after all expenses, shows a consistent upward trend over the past five years.
- Nordson Corporation's net profit margin increased from 11.95% in 2020 to 17.38% in 2024, indicating improved efficiency in managing costs and generating profits for its shareholders.
Overall, Nordson Corporation has shown resilience in maintaining stable operating and pretax margins, while successfully improving its net profit margin over the years. This suggests effective cost management strategies and operational efficiency within the company.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.23% | 12.81% | 18.38% | 16.23% | 9.51% |
| Return on assets (ROA) | 7.79% | 9.28% | 13.43% | 11.99% | 6.79% |
| Return on total capital | 13.39% | 15.99% | 25.45% | 20.39% | 11.80% |
| Return on equity (ROE) | 15.94% | 18.76% | 22.36% | 21.04% | 14.19% |
Nordson Corporation's profitability ratios exhibit fluctuations over the past five years. The Operating return on assets (Operating ROA) declined from 18.38% in 2022 to 11.23% in 2024, indicating a decrease in the company's ability to generate operating profits from its assets. However, the return on assets (ROA) remained relatively stable around 7.79% to 9.28% during the same period, suggesting the company's overall profitability in relation to its total assets.
Meanwhile, the return on total capital saw a significant increase from 11.80% in 2020 to 25.45% in 2022 before dropping to 13.39% in 2024. This ratio reflects Nordson Corporation's efficiency in generating profits from both equity and debt capital employed in the business.
The return on equity (ROE) also demonstrates variability, reaching a peak of 22.36% in 2022 and then slightly declining to 15.94% in 2024. ROE measures the company's ability to generate profits from shareholders' equity, and Nordson's performance indicates fluctuations in this aspect over the past five years.
Overall, Nordson Corporation's profitability ratios show a mix of positive and negative trends, highlighting the importance of closely monitoring the company's operational efficiency, asset utilization, and capital management strategies to ensure sustained profitability and shareholder value.