Nordson Corporation (NDSN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,932,190 | 2,598,060 | 2,294,380 | 2,159,130 | 1,758,990 |
| ROE | 15.94% | 18.76% | 22.36% | 21.04% | 14.19% |
October 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $467,284K ÷ $2,932,190K
= 15.94%
Over the past five years, Nordson Corporation's return on equity (ROE) has exhibited a fluctuating trend. In 2022, the company achieved the highest ROE of 22.36%, indicating efficient utilization of shareholder equity to generate profits. The following year, in 2023, Nordson's ROE slightly decreased to 18.76%, which still represented a solid return for shareholders.
However, in the most recent fiscal year ending on October 31, 2024, the company experienced a further decline in ROE to 15.94%. This decrease suggests that Nordson may be facing challenges in maintaining or improving profitability relative to the amount of equity invested by shareholders.
It is worth noting that in 2021, Nordson's ROE was also relatively strong at 21.04%, indicating a consistent performance in delivering returns to its equity investors. The ROE figure in 2020 was lower at 14.19%, which might be attributed to various internal or external factors affecting the company's financial performance during that period.
Overall, Nordson Corporation's ROE trend indicates some variability in its ability to generate profit from shareholders' equity, with fluctuations observed over the past five years. This metric should be further analyzed in conjunction with other financial ratios and operational data to gain a more comprehensive understanding of the company's financial health and performance.
Peer comparison
Oct 31, 2024