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NTRS (Northern Trust) Piotroski F-Score : 8 (As of Dec. 14, 2024)


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What is Northern Trust Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Northern Trust has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Northern Trust's Piotroski F-Score or its related term are showing as below:

NTRS' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Northern Trust was 9. The lowest was 3. And the median was 6.


Northern Trust Piotroski F-Score Historical Data

The historical data trend for Northern Trust's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Northern Trust Piotroski F-Score Chart

Northern Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.00 5.00 6.00 4.00 6.00

Northern Trust Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 9.00 8.00

Competitive Comparison of Northern Trust's Piotroski F-Score

For the Asset Management subindustry, Northern Trust's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Northern Trust's Piotroski F-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Northern Trust's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Northern Trust's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 113.1 + 214.7 + 896.1 + 464.9 = $1,689 Mil.
Cash Flow from Operations was 2803.2 + -1452.6 + 2990.3 + 611.1 = $4,952 Mil.
Revenue was 1545.3 + 1646.8 + 2715.5 + 1968.5 = $7,876 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(146330.6 + 150783.1 + 156111 + 156797.1 + 155753.8) / 5 = $153155.12 Mil.
Total Assets at the begining of this year (Sep23) was $146,331 Mil.
Long-Term Debt & Capital Lease Obligation was $13,801 Mil.
Total Assets was $155,754 Mil.
Total Liabilities was $143,005 Mil.
Net Income was 155.7 + 334.6 + 331.8 + 327.8 = $1,150 Mil.

Revenue was 1519 + 1744.6 + 1757.1 + 1726.5 = $6,747 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(159839.6 + 155036.7 + 151108 + 156752.5 + 146330.6) / 5 = $153813.48 Mil.
Total Assets at the begining of last year (Sep22) was $159,840 Mil.
Long-Term Debt & Capital Lease Obligation was $13,621 Mil.
Total Assets was $146,331 Mil.
Total Liabilities was $134,483 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Northern Trust's current Net Income (TTM) was 1,689. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Northern Trust's current Cash Flow from Operations (TTM) was 4,952. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=1688.8/146330.6
=0.01154099

ROA (Last Year)=Net Income/Total Assets (Sep22)
=1149.9/159839.6
=0.00719409

Northern Trust's return on assets of this year was 0.01154099. Northern Trust's return on assets of last year was 0.00719409. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Northern Trust's current Net Income (TTM) was 1,689. Northern Trust's current Cash Flow from Operations (TTM) was 4,952. ==> 4,952 > 1,689 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=13801.3/153155.12
=0.09011321

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=13620.5/153813.48
=0.08855206

Northern Trust's gearing of this year was 0.09011321. Northern Trust's gearing of last year was 0.08855206. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep24)=Total Assets/Total Liabilities
=155753.8/143004.8
=1.08915085

Current Ratio (Last Year: Sep23)=Total Assets/Total Liabilities
=146330.6/134483.4
=1.08809414

Northern Trust's current ratio of this year was 1.08915085. Northern Trust's current ratio of last year was 1.08809414. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Northern Trust's number of shares in issue this year was 200.549. Northern Trust's number of shares in issue last year was 207.253. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=1688.8/7876.1
=0.21442084

Net Margin (Last Year: TTM)=Net Income/Revenue
=1149.9/6747.2
=0.17042625

Northern Trust's net margin of this year was 0.21442084. Northern Trust's net margin of last year was 0.17042625. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=7876.1/146330.6
=0.05382401

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=6747.2/159839.6
=0.04221232

Northern Trust's asset turnover of this year was 0.05382401. Northern Trust's asset turnover of last year was 0.04221232. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Northern Trust has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Northern Trust  (NAS:NTRS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Northern Trust Piotroski F-Score Related Terms

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Northern Trust Business Description

Traded in Other Exchanges
Address
50 South La Salle Street, Chicago, IL, USA, 60603
Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of September 2024, Northern Trust had assets under custody or administration of $17.4 trillion and assets under management of $1.6 trillion.
Executives
Steven L Fradkin officer: Executive Vice President & CFO 50 S LASALLE ST, CHICAGO IL 60603
Thomas A South officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603
Peter Cherecwich officer: EVP, Global Fund Services 50 SOUTH LASALLE ST, M9, CHICAGO IL 60603
Jane Karpinski officer: Senior VP & Controller 50 SOUTH LASALLE STREET, CHICAGO IL 60603
Levy Susan Cohen officer: Executive VP & General Counsel 50 S LASALLE ST, M9, CHICAGO IL 60603
Teresa Parker officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603
Charles A Tribbett director 50 S LA SALLE ST, CHICAGO IL 60675
Mark C Gossett officer: Executive Vice President 50 SOUTH LA SALLE STREET, CHICAGO IL 60603
Jason J. Tyler officer: EVP & Chief Financial Officer C/O MULTI PACKAGING SOLUTIONS, 150 E 52ND ST, 28TH FLOOR, NEW YORK NY 10022
Michael O'grady officer: President / C&IS 50 S LASALLE STREET, CHICAGO IL 60603
Prado Becerra Jose Luis director 50 S. LASALLE STREET, CHICAGO IL 60603
Daniel Gamba officer: President / Asset Management 50 SOUTH LA SALLE ST, CHICAGO IL 60603
Lauren E Allnutt officer: SVP & Controller 50 S LA SALLE ST, CHICAGO IL 60603
Alexandria Taylor officer: Chief Human Resources Officer 50 SOUTH LA SALLE STREET, CHICAGO IL 60603
Clair Joyce St officer: Executive Vice President 50 S LA SALLE ST, CHICAGO IL 60603