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

Question

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

Robert · Accepted Answer

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,

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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