Northern Trust Corporation's Financial Efficiency Compared to Peers

Core Insights - Northern Trust Corporation is a significant player in the financial services sector, providing a variety of services such as asset servicing, fund administration, investment management, and banking solutions, with a global reach targeting corporations, institutions, and affluent individuals [1] Financial Efficiency Analysis - Northern Trust's Return on Invested Capital (ROIC) stands at 6.78%, while its Weighted Average Cost of Capital (WACC) is 19.12%, resulting in a ROIC to WACC ratio of 0.35, indicating that the company is not generating returns above its cost of capital [2] - In comparison, State Street Corporation has a ROIC of 63.17% and a WACC of 15.35%, leading to a ROIC to WACC ratio of 4.12, showcasing its superior efficiency in generating returns well above its cost of capital [3] - Comerica Incorporated reports a ROIC of 3.40% and a WACC of 12.35%, yielding a ROIC to WACC ratio of 0.28, similar to Northern Trust, indicating challenges in capital utilization [4] - M&T Bank Corporation and Zions Bancorporation have ROIC to WACC ratios of 0.60 and 0.26, respectively, with M&T Bank showing a more favorable balance compared to Northern Trust, while Zions faces similar efficiency challenges [5] - Marsh & McLennan Companies has a ROIC to WACC ratio of 1.84, demonstrating a strong ability to generate returns above its cost of capital, though not as high as State Street [5]