Nordson Corporation (NDSN)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 674,001 | 672,761 | 702,360 | 615,127 | 349,545 |
| Total assets | US$ in thousands | 6,000,970 | 5,251,770 | 3,820,380 | 3,790,960 | 3,674,660 |
| Operating ROA | 11.23% | 12.81% | 18.38% | 16.23% | 9.51% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $674,001K ÷ $6,000,970K
= 11.23%
Nordson Corporation's operating return on assets (ROA) has shown some fluctuations over the past five years. The operating ROA was 11.23% in October 2024, a slight decrease from the previous year's 12.81%. This decrease suggests that the company may be facing challenges in generating operating income relative to its total assets.
Comparing the current operating ROA to the figures from 2022 and 2021, there has been a noticeable decline. In October 2022, the operating ROA was 18.38%, indicating a relatively high level of operating income generated per dollar of assets. This suggests that Nordson Corporation was more efficient in utilizing its assets to generate operating profits in the past.
However, the operating ROA in October 2021 was slightly lower at 16.23%, still higher than the current level. Despite the decrease from 2022 to 2021, the company was able to maintain a relatively strong operating ROA during that period.
Looking back to October 2020, Nordson Corporation's operating ROA was 9.51%, indicating an improvement in the company's asset utilization and profitability since that time. The upward trend from 2020 to 2022 suggests that the company was able to enhance its operational efficiency and generate higher returns relative to its assets.
Overall, the fluctuations in Nordson Corporation's operating ROA over the past five years indicate varying levels of efficiency in generating operating income from its assets. Further analysis of the company's operational performance and asset utilization may provide insights into the factors influencing these changes in operating ROA.
Peer comparison
Oct 31, 2024