Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Northrop Grumman Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Activity Ratio
Total Asset Turnover
Reported 0.84 0.84 0.83 0.82 0.80
Adjusted 0.84 0.84 0.83 0.83 0.77
Liquidity Ratio
Current Ratio
Reported 1.08 1.30 1.60 1.13 1.17
Adjusted 1.08 1.31 1.61 1.14 1.17
Solvency Ratios
Debt to Equity
Reported 0.84 0.99 1.42 1.57 1.76
Adjusted 0.98 1.11 1.61 1.85 1.96
Debt to Capital
Reported 0.46 0.50 0.59 0.61 0.64
Adjusted 0.50 0.53 0.62 0.65 0.66
Financial Leverage
Reported 2.86 3.29 4.20 4.66 4.60
Adjusted 2.85 3.20 4.29 4.87 4.77
Profitability Ratios
Net Profit Margin
Reported 13.38% 19.64% 8.67% 6.64% 10.73%
Adjusted 12.32% 21.08% 9.37% 5.12% 11.18%
Return on Equity (ROE)
Reported 31.97% 54.19% 30.14% 25.49% 39.44%
Adjusted 29.48% 56.75% 33.47% 20.78% 40.85%
Return on Assets (ROA)
Reported 11.19% 16.45% 7.17% 5.47% 8.58%
Adjusted 10.34% 17.73% 7.80% 4.27% 8.56%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Northrop Grumman Corp. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Northrop Grumman Corp. adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Northrop Grumman Corp. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Northrop Grumman Corp. adjusted debt-to-capital ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Northrop Grumman Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Northrop Grumman Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Northrop Grumman Corp. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Northrop Grumman Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Northrop Grumman Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Sales 36,602 35,667 36,799 33,841 30,095
Total assets 43,755 42,579 44,469 41,089 37,653
Activity Ratio
Total asset turnover1 0.84 0.84 0.83 0.82 0.80
Adjusted
Selected Financial Data (US$ in millions)
Sales 36,602 35,667 36,799 33,841 30,095
Adjusted total assets2 43,601 42,413 44,191 40,614 39,317
Activity Ratio
Adjusted total asset turnover3 0.84 0.84 0.83 0.83 0.77

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Total asset turnover = Sales ÷ Total assets
= 36,602 ÷ 43,755 = 0.84

2 Adjusted total assets. See details »

3 2022 Calculation
Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 36,602 ÷ 43,601 = 0.84

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Northrop Grumman Corp. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Current assets 12,488 12,426 15,344 10,685 9,680
Current liabilities 11,587 9,530 9,580 9,434 8,274
Liquidity Ratio
Current ratio1 1.08 1.30 1.60 1.13 1.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 12,496 12,460 15,377 10,718 9,714
Current liabilities 11,587 9,530 9,580 9,434 8,274
Liquidity Ratio
Adjusted current ratio3 1.08 1.31 1.61 1.14 1.17

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,488 ÷ 11,587 = 1.08

2 Adjusted current assets. See details »

3 2022 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 12,496 ÷ 11,587 = 1.08

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Northrop Grumman Corp. adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 12,877 12,783 15,003 13,879 14,400
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
Solvency Ratio
Debt to equity1 0.84 0.99 1.42 1.57 1.76
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 15,000 14,657 16,609 15,448 16,124
Adjusted shareholders’ equity3 15,290 13,250 10,301 8,344 8,235
Solvency Ratio
Adjusted debt to equity4 0.98 1.11 1.61 1.85 1.96

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 12,877 ÷ 15,312 = 0.84

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 15,000 ÷ 15,290 = 0.98

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Northrop Grumman Corp. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 12,877 12,783 15,003 13,879 14,400
Total capital 28,189 25,709 25,582 22,698 22,587
Solvency Ratio
Debt to capital1 0.46 0.50 0.59 0.61 0.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 15,000 14,657 16,609 15,448 16,124
Adjusted total capital3 30,290 27,907 26,910 23,792 24,359
Solvency Ratio
Adjusted debt to capital4 0.50 0.53 0.62 0.65 0.66

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,877 ÷ 28,189 = 0.46

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 15,000 ÷ 30,290 = 0.50

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Northrop Grumman Corp. adjusted debt-to-capital ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 43,755 42,579 44,469 41,089 37,653
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
Solvency Ratio
Financial leverage1 2.86 3.29 4.20 4.66 4.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 43,601 42,413 44,191 40,614 39,317
Adjusted shareholders’ equity3 15,290 13,250 10,301 8,344 8,235
Solvency Ratio
Adjusted financial leverage4 2.85 3.20 4.29 4.87 4.77

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 43,755 ÷ 15,312 = 2.86

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 43,601 ÷ 15,290 = 2.85

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Northrop Grumman Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net earnings 4,896 7,005 3,189 2,248 3,229
Sales 36,602 35,667 36,799 33,841 30,095
Profitability Ratio
Net profit margin1 13.38% 19.64% 8.67% 6.64% 10.73%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,508 7,520 3,448 1,734 3,364
Sales 36,602 35,667 36,799 33,841 30,095
Profitability Ratio
Adjusted net profit margin3 12.32% 21.08% 9.37% 5.12% 11.18%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 4,896 ÷ 36,602 = 13.38%

2 Adjusted net earnings. See details »

3 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 4,508 ÷ 36,602 = 12.32%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Northrop Grumman Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net earnings 4,896 7,005 3,189 2,248 3,229
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
Profitability Ratio
ROE1 31.97% 54.19% 30.14% 25.49% 39.44%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,508 7,520 3,448 1,734 3,364
Adjusted shareholders’ equity3 15,290 13,250 10,301 8,344 8,235
Profitability Ratio
Adjusted ROE4 29.48% 56.75% 33.47% 20.78% 40.85%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 4,896 ÷ 15,312 = 31.97%

2 Adjusted net earnings. See details »

3 Adjusted shareholders’ equity. See details »

4 2022 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity
= 100 × 4,508 ÷ 15,290 = 29.48%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Northrop Grumman Corp. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net earnings 4,896 7,005 3,189 2,248 3,229
Total assets 43,755 42,579 44,469 41,089 37,653
Profitability Ratio
ROA1 11.19% 16.45% 7.17% 5.47% 8.58%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,508 7,520 3,448 1,734 3,364
Adjusted total assets3 43,601 42,413 44,191 40,614 39,317
Profitability Ratio
Adjusted ROA4 10.34% 17.73% 7.80% 4.27% 8.56%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,896 ÷ 43,755 = 11.19%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2022 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 4,508 ÷ 43,601 = 10.34%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Northrop Grumman Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.