Nordson Corporation (NDSN)
Return on equity (ROE)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 492,804 | 487,493 | 500,964 | 514,884 | 496,955 | 513,103 | 482,314 | 482,685 | 497,195 | 454,368 | 362,383 | 307,182 | 275,117 | 249,539 | 333,737 | 340,684 | 340,528 | 337,091 | 321,120 | 322,076 |
| Total stockholders’ equity | US$ in thousands | 2,723,970 | 2,598,060 | 2,579,810 | 2,497,000 | 2,446,680 | 2,294,380 | 2,199,040 | 2,190,620 | 2,218,630 | 2,159,130 | 2,063,180 | 1,950,360 | 1,857,180 | 1,758,990 | 1,769,910 | 1,652,490 | 1,634,270 | 1,581,040 | 1,546,890 | 1,471,260 |
| ROE | 18.09% | 18.76% | 19.42% | 20.62% | 20.31% | 22.36% | 21.93% | 22.03% | 22.41% | 21.04% | 17.56% | 15.75% | 14.81% | 14.19% | 18.86% | 20.62% | 20.84% | 21.32% | 20.76% | 21.89% |
January 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $492,804K ÷ $2,723,970K
= 18.09%
Based on the given data, Nordson Corp.'s return on equity (ROE) has shown a consistent and relatively strong performance over the past eight quarters, ranging from 18.09% to 22.36%. The ROE indicates the company's ability to generate profits from the shareholders' equity invested in the business.
Although there has been some fluctuation in the ROE figures, with a slight decrease from Q1 2023 to Q1 2024, the overall trend appears to be positive. Nordson Corp. has maintained ROE above 18% in every quarter, indicating efficient utilization of shareholder funds to generate profits.
The highest ROE of 22.36% was reported in Q4 2022, followed by Q1 2023 at 20.31%. These figures suggest that Nordson Corp. has been able to generate healthy returns for its shareholders compared to the equity invested in the company.
In conclusion, Nordson Corp.'s consistent ROE performance indicates a strong financial position and effective management in maximizing returns for shareholders over the analyzed period.
Peer comparison
Jan 31, 2024