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NTRSO.PFD (Northern Trust) Return-on-Tangible-Equity : 12.92% (As of Mar. 2025)


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What is Northern Trust Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Northern Trust's annualized net income for the quarter that ended in Mar. 2025 was $1,568.00 Mil. Northern Trust's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $12,135.75 Mil. Therefore, Northern Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 12.92%.

The historical rank and industry rank for Northern Trust's Return-on-Tangible-Equity or its related term are showing as below:

NTRSO.PFD' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.18   Med: 12.46   Max: 18.5
Current: 18.5

During the past 13 years, Northern Trust's highest Return-on-Tangible-Equity was 18.50%. The lowest was 10.18%. And the median was 12.46%.

NTRSO.PFD's Return-on-Tangible-Equity is ranked better than
78.42% of 1636 companies
in the Asset Management industry
Industry Median: 7.735 vs NTRSO.PFD: 18.50

Northern Trust Return-on-Tangible-Equity Historical Data

The historical data trend for Northern Trust's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Northern Trust Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.31 13.86 12.21 10.18 17.44

Northern Trust Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity 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 7.60 30.68 15.50 15.10 12.92

Competitive Comparison of Northern Trust's Return-on-Tangible-Equity

For the Asset Management subindustry, Northern Trust's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Northern Trust's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Northern Trust's Return-on-Tangible-Equity falls into.


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Northern Trust Return-on-Tangible-Equity Calculation

Northern Trust's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=2031.1/( (11195.6+12093.5 )/ 2 )
=2031.1/11644.55
=17.44 %

Northern Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=1568/( (12093.5+12178)/ 2 )
=1568/12135.75
=12.92 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Northern Trust  (NAS:NTRSO.PFD) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Northern Trust Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Northern Trust's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


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 December 2024, Northern Trust had assets under custody or administration of $16.8 trillion and assets under management of $1.6 trillion.