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.

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Northrop Grumman Corp., solvency ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Debt Ratios
Debt to equity 0.84 0.99 1.42 1.57 1.76
Debt to equity (including operating lease liability) 0.98 1.13 1.57 1.75 1.76
Debt to capital 0.46 0.50 0.59 0.61 0.64
Debt to capital (including operating lease liability) 0.49 0.53 0.61 0.64 0.64
Debt to assets 0.29 0.30 0.34 0.34 0.38
Debt to assets (including operating lease liability) 0.34 0.34 0.37 0.38 0.38
Financial leverage 2.86 3.29 4.20 4.66 4.60
Coverage Ratios
Interest coverage 12.53 17.08 7.29 5.83 7.66
Fixed charge coverage 7.96 11.26 5.08 4.01 4.99

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Northrop Grumman Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Northrop Grumman Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Northrop Grumman Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Northrop Grumman Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Northrop Grumman Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Northrop Grumman Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Northrop Grumman Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Northrop Grumman Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Northrop Grumman Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Debt to Equity

Northrop Grumman Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
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
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 2.33 2.29 2.42 2.58
Eaton Corp. plc 0.51 0.52 0.54 0.52
GE Aerospace 0.89 0.87 2.11 3.21
Honeywell International Inc. 1.17 1.06 1.28 0.87
Lockheed Martin Corp. 1.68 1.07 2.02 4.05
RTX Corp. 0.44 0.43 0.44 1.04
Debt to Equity, Sector
Capital Goods 1.33 1.26 1.75 2.08
Debt to Equity, Industry
Industrials 1.32 1.25 1.73 1.86

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 Click competitor name to see calculations.

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

Debt to Equity (including Operating Lease Liability)

Northrop Grumman Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
Total debt 12,877 12,783 15,003 13,879 14,400
Current operating lease liabilities (included in Other current liabilities) 299 284 263 261
Non-current operating lease liabilities 1,824 1,590 1,343 1,308
Total debt (including operating lease liability) 15,000 14,657 16,609 15,448 14,400
 
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
Solvency Ratio
Debt to equity (including operating lease liability)1 0.98 1.13 1.57 1.75 1.76
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co.
Caterpillar Inc. 2.37 2.33 2.46 2.62
Eaton Corp. plc 0.54 0.55 0.57 0.55
GE Aerospace 0.96 0.94 2.20 3.32
Honeywell International Inc. 1.23 1.11 1.32 0.90
Lockheed Martin Corp. 1.81 1.19 2.21 4.40
RTX Corp. 0.47 0.46 0.47 1.11
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.39 1.32 1.81 2.17
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.47 1.39 1.89 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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 15,000 ÷ 15,312 = 0.98

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Northrop Grumman Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Debt to Capital

Northrop Grumman Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
Total debt 12,877 12,783 15,003 13,879 14,400
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
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
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.39 1.35 1.40 1.46
Caterpillar Inc. 0.70 0.70 0.71 0.72
Eaton Corp. plc 0.34 0.34 0.35 0.34
GE Aerospace 0.47 0.47 0.68 0.76
Honeywell International Inc. 0.54 0.51 0.56 0.46
Lockheed Martin Corp. 0.63 0.52 0.67 0.80
RTX Corp. 0.31 0.30 0.31 0.51
Debt to Capital, Sector
Capital Goods 0.57 0.56 0.64 0.68
Debt to Capital, Industry
Industrials 0.57 0.56 0.63 0.65

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 Click competitor name to see calculations.

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

Debt to Capital (including Operating Lease Liability)

Northrop Grumman Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
Total debt 12,877 12,783 15,003 13,879 14,400
Current operating lease liabilities (included in Other current liabilities) 299 284 263 261
Non-current operating lease liabilities 1,824 1,590 1,343 1,308
Total debt (including operating lease liability) 15,000 14,657 16,609 15,448 14,400
Shareholders’ equity 15,312 12,926 10,579 8,819 8,187
Total capital (including operating lease liability) 30,312 27,583 27,188 24,267 22,587
Solvency Ratio
Debt to capital (including operating lease liability)1 0.49 0.53 0.61 0.64 0.64
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.37 1.34 1.39 1.43
Caterpillar Inc. 0.70 0.70 0.71 0.72
Eaton Corp. plc 0.35 0.36 0.36 0.35
GE Aerospace 0.49 0.49 0.69 0.77
Honeywell International Inc. 0.55 0.53 0.57 0.47
Lockheed Martin Corp. 0.64 0.54 0.69 0.81
RTX Corp. 0.32 0.31 0.32 0.53
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.58 0.57 0.64 0.68
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.60 0.58 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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 15,000 ÷ 30,312 = 0.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Northrop Grumman Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Debt to Assets

Northrop Grumman Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
Total debt 12,877 12,783 15,003 13,879 14,400
 
Total assets 43,755 42,579 44,469 41,089 37,653
Solvency Ratio
Debt to assets1 0.29 0.30 0.34 0.34 0.38
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.42 0.42 0.42 0.20
Caterpillar Inc. 0.45 0.46 0.47 0.48
Eaton Corp. plc 0.25 0.25 0.25 0.25
GE Aerospace 0.17 0.18 0.30 0.34
Honeywell International Inc. 0.31 0.30 0.35 0.27
Lockheed Martin Corp. 0.29 0.23 0.24 0.27
RTX Corp. 0.20 0.20 0.20 0.31
Debt to Assets, Sector
Capital Goods 0.28 0.28 0.32 0.31
Debt to Assets, Industry
Industrials 0.29 0.29 0.32 0.32

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 assets = Total debt ÷ Total assets
= 12,877 ÷ 43,755 = 0.29

2 Click competitor name to see calculations.

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

Debt to Assets (including Operating Lease Liability)

Northrop Grumman Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,072 6 742 1,109 517
Long-term debt, net of current portion 11,805 12,777 14,261 12,770 13,883
Total debt 12,877 12,783 15,003 13,879 14,400
Current operating lease liabilities (included in Other current liabilities) 299 284 263 261
Non-current operating lease liabilities 1,824 1,590 1,343 1,308
Total debt (including operating lease liability) 15,000 14,657 16,609 15,448 14,400
 
Total assets 43,755 42,579 44,469 41,089 37,653
Solvency Ratio
Debt to assets (including operating lease liability)1 0.34 0.34 0.37 0.38 0.38
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.43 0.43 0.43 0.21
Caterpillar Inc. 0.46 0.46 0.48 0.49
Eaton Corp. plc 0.26 0.27 0.27 0.27
GE Aerospace 0.19 0.19 0.31 0.35
Honeywell International Inc. 0.33 0.32 0.36 0.28
Lockheed Martin Corp. 0.32 0.26 0.26 0.29
RTX Corp. 0.21 0.21 0.21 0.33
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.29 0.33 0.33
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.33 0.32 0.35 0.34

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 15,000 ÷ 43,755 = 0.34

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Northrop Grumman Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Financial Leverage

Northrop Grumman Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
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
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 5.16 5.02 5.11 5.38
Eaton Corp. plc 2.06 2.07 2.13 2.04
GE Aerospace 5.16 4.93 7.13 9.40
Honeywell International Inc. 3.73 3.47 3.68 3.17
Lockheed Martin Corp. 5.71 4.64 8.43 15.20
RTX Corp. 2.19 2.21 2.25 3.34
Financial Leverage, Sector
Capital Goods 4.71 4.55 5.54 6.65
Financial Leverage, Industry
Industrials 4.49 4.33 5.35 5.76

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 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Northrop Grumman Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Interest Coverage

Northrop Grumman Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net earnings 4,896 7,005 3,189 2,248 3,229
Add: Income tax expense 940 1,933 539 300 513
Add: Interest expense 506 556 593 528 562
Earnings before interest and tax (EBIT) 6,342 9,494 4,321 3,076 4,304
Solvency Ratio
Interest coverage1 12.53 17.08 7.29 5.83 7.66
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -0.98 -0.88 -5.71 -2.19
Caterpillar Inc. 20.80 17.88 8.80 19.62
Eaton Corp. plc 21.22 21.11 12.72 11.98
GE Aerospace 1.88 -0.96 2.59 1.27
Honeywell International Inc. 16.41 22.09 17.75 22.17
Lockheed Martin Corp. 11.72 14.27 14.93 12.09
RTX Corp. 5.64 4.71 -0.65 5.65
Interest Coverage, Sector
Capital Goods 4.84 3.98 1.99 4.85
Interest Coverage, Industry
Industrials 5.53 6.00 2.04 4.37

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
Interest coverage = EBIT ÷ Interest expense
= 6,342 ÷ 506 = 12.53

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Northrop Grumman Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Fixed Charge Coverage

Northrop Grumman Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net earnings 4,896 7,005 3,189 2,248 3,229
Add: Income tax expense 940 1,933 539 300 513
Add: Interest expense 506 556 593 528 562
Earnings before interest and tax (EBIT) 6,342 9,494 4,321 3,076 4,304
Add: Operating lease cost 332 315 320 318 375
Earnings before fixed charges and tax 6,674 9,809 4,641 3,394 4,679
 
Interest expense 506 556 593 528 562
Operating lease cost 332 315 320 318 375
Fixed charges 838 871 913 846 937
Solvency Ratio
Fixed charge coverage1 7.96 11.26 5.08 4.01 4.99
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. -0.70 -0.64 -4.75 -1.19
Caterpillar Inc. 14.92 12.73 6.58 13.01
Eaton Corp. plc 10.01 10.40 6.24 7.45
GE Aerospace 1.35 -0.22 1.93 1.09
Honeywell International Inc. 11.00 13.67 11.49 14.06
Lockheed Martin Corp. 8.44 9.95 11.12 9.12
RTX Corp. 4.40 3.66 -0.22 4.31
Fixed Charge Coverage, Sector
Capital Goods 3.61 3.06 1.66 3.63
Fixed Charge Coverage, Industry
Industrials 3.58 3.93 1.59 2.96

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,674 ÷ 838 = 7.96

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Northrop Grumman Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.