The business behind the dividend
| Measure | NTRS | Median | Formula |
|---|---|---|---|
| Return on equity | 13.4% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.44bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $5.46bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 46.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 34.6% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 13.4% | 15.9% | 9.3% | 11.9% | 12.9% | 10.3% | 13.5% | 14.8% | 11.7% | 10.6% | 11.9% |
| Operating margin | 46.6% | 56.3% | 33.6% | 39.8% | 46.1% | 40.7% | 50.5% | 52.2% | 47.6% | 30.6% | 46.1% |
| Net margin | 34.6% | 43.0% | 25.4% | 30.1% | 35.4% | 30.3% | 38.7% | 41.5% | 34.9% | 20.8% | 34.6% |
How it compares in banks & insurers
Among the 48 banks & insurers companies here measured on GAAP earnings, Northern Trust pays out less than 21 of them. The median for that group is 34.0%, against this company’s 35.5%.
Closest on GAAP earnings
- M&T Bank (MTB) 33.5%
- State Street (STT) 34.0%
- Aflac (AFL) 34.2%
- Morgan Stanley (MS) 37.7%
Same sector and same denominator, so the figures are comparable. All 48 in banks & insurers →