Nordson Corporation (NDSN)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 487,493 | 513,103 | 454,368 | 249,539 | 337,091 |
| Total assets | US$ in thousands | 5,251,770 | 3,820,380 | 3,790,960 | 3,674,660 | 3,516,450 |
| ROA | 9.28% | 13.43% | 11.99% | 6.79% | 9.59% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $487,493K ÷ $5,251,770K
= 9.28%
To analyze Nordson Corp.'s return on assets (ROA) over the past five years, we calculate the ROA by dividing net income by total assets.
The ROA for Nordson Corp. in 2023 was 9.28%, down from 13.43% in 2022 and 11.99% in 2021. This decrease can be attributed to a lower net income or a higher total asset base. However, the ROA in 2023 is still higher compared to 2019 and 2020, which were 9.59% and 6.79% respectively.
The declining trend from 2022 to 2023 indicates that the company may be experiencing challenges in generating earnings from its assets or facing an increase in the asset base without a corresponding increase in earnings.
Overall, the trend in ROA suggests that Nordson Corp. has been maintaining a moderate level of efficiency in generating earnings from its assets, but there may be a need to reassess asset utilization and profitability strategies to improve the ROA in the future.
Peer comparison
Oct 31, 2023