Nordson Corporation (NDSN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,598,060 | 2,294,380 | 2,159,130 | 1,758,990 | 1,581,040 |
| ROE | 18.76% | 22.36% | 21.04% | 14.19% | 21.32% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $487,493K ÷ $2,598,060K
= 18.76%
Nordson Corp.'s return on equity (ROE) has exhibited some fluctuations over the past five years. In the most recent fiscal year ending October 31, 2023, the company's ROE stood at 18.76%, reflecting a decrease from the previous year when it was 22.36%. This decline may indicate a lower level of profitability generated from shareholders' equity. However, it is noteworthy that the ROE in 2023 remains relatively strong compared to the fiscal year ending October 31, 2020, when it was 14.19%. This suggests an improvement in the company's ability to generate profits from equity investments. Additionally, the ROE in 2023 is lower than the 21.32% recorded in 2019 and 21.04% in 2021, indicating a potential trend of decreased profitability relative to shareholders' equity over the past few years. Further analysis of the company's financial performance and underlying factors affecting ROE would provide a more comprehensive understanding of Nordson Corp.'s financial position and the implications of its ROE trend.
Peer comparison
Oct 31, 2023