Nordson Corporation (NDSN)
Return on assets (ROA)
Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 467,284 | 487,493 | 513,103 | 454,368 | 249,539 |
Total assets | US$ in thousands | 6,000,970 | 5,251,770 | 3,820,380 | 3,790,960 | 3,674,660 |
ROA | 7.79% | 9.28% | 13.43% | 11.99% | 6.79% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $467,284K ÷ $6,000,970K
= 7.79%
Nordson Corporation's return on assets (ROA) has displayed some fluctuations over the past five years. The ROA was relatively stable from 2020 to 2022, ranging from 6.79% to 13.43%. However, there was a decline in ROA in 2023 to 9.28%, followed by a further decrease to 7.79% in 2024. This decline over the last two years suggests that Nordson's profitability in generating earnings from its assets has weakened. It is important for Nordson Corporation to analyze the factors contributing to this decrease in ROA and implement strategies to improve efficiency and profitability in utilizing its assets effectively.
Peer comparison
Oct 31, 2024