How would you assess Northern Trust market and industry performance based on its five-year revenues and earnings Results? How does the company's five-year performance compare to its industry peers...

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How would you assess Northern Trust market and industry performance based on its five-year revenues and earnings



Results?


How does the company's five-year performance compare to its industry peers over the same time period?



What portfolio recommendations or asset allocation strategies might you consider to improve investment performance?



Support your responses by referring to the company’s annual report and recent stock performance on both an absolute and a absolute and a relative (peers) basis



Be sure to highlight any industry trends that you consider in making your responses























Northern Trust (NTRS) Stock




2016




2017




2018




2019




2020




2021




Revenues



4962



5160.5



5366.9



5581.6



5804.8



6037.0



Compensation and Benefits



1877



3612.3



3756.8



3907.1



4063.4



4225.9



Adm, Promotion and other Expenses



93



877.28



912.37



948.87



957.80



996.11



Other Expense



-1970



0



0



0



0



0



Operating Income



4962



670.86



697.70



725.60



783.65



815.00



Net Interest Expenditure



182



0



0



0



0



0



Other Income



182



0



0



0



0



0



Pre-Tax Income



4962



670.86



697.70



725.60



783.65



815.00



Taxes



485



201.26



209.31



217.68



235.10



244.50



Other Income



-3445



0



0



0



0



0



Net Income



1032



469.60



488.39



507.92



548.56



570.50



Earnings Per Share



4.4254



2.0597



2.1421



2.2277



2.4060



2.5022



Shares Outstanding



228



228



228



228



228



228










Northern Trust (NTRS) Bond




Firm




Ind Avg




Debt & Coverage Ratios



Debt/Assets



0.9212



0.375



Debt/Equity



0.9



0.6



Current Assets/Current Liability



-



1.69



EBITDA/Interest



9.3



303



Debt/EBITDA



293.08



25.3



Cash Flow Ops/Total Debt



0.0132



0.2448


Answered Same DayDec 26, 2021

Answer To: How would you assess Northern Trust market and industry performance based on its five-year revenues...

Robert answered on Dec 26 2021
130 Votes
The Northern Trust stock is not a viable investment. The revenues of the company are
consistently
growing over the five year analysis period. However, the expenses of the company
are seen to be growing much more in proportion than the revenues. The compensation and
benefits for instance have grown from (1877/4962) 37.83% of revenues to (4225/6037) 69.98%
of revenues. This has led to a decline in the operating income of the company from 100% to
(815/6037) 13.5%. There is no other income of the Company also implying that it has not
invested in any other assets or diversified its investments.
As per the company data available, the net income has declined from...
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