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 Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Northrop Grumman Corp., profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Gross profit margin 20.42% 20.38% 20.32% 21.45% 22.57%
Operating profit margin 9.84% 15.84% 11.05% 11.73% 12.56%
Net profit margin 13.38% 19.64% 8.67% 6.64% 10.73%
Return on Investment
Return on equity (ROE) 31.97% 54.19% 30.14% 25.49% 39.44%
Return on assets (ROA) 11.19% 16.45% 7.17% 5.47% 8.58%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Northrop Grumman Corp. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Northrop Grumman Corp. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Northrop Grumman Corp. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

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

Gross Profit Margin

Northrop Grumman Corp., gross profit margin 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)
Gross profit 7,474 7,268 7,478 7,259 6,791
Sales 36,602 35,667 36,799 33,841 30,095
Profitability Ratio
Gross profit margin1 20.42% 20.38% 20.32% 21.45% 22.57%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 5.26% 4.84% -9.78% 5.83%
Caterpillar Inc. 26.91% 26.30% 25.47% 27.83%
Eaton Corp. plc 33.19% 32.28% 30.52% 32.97%
GE Aerospace 24.55% 24.19% 17.26% 23.52%
Honeywell International Inc. 36.99% 35.85% 32.07% 33.70%
Lockheed Martin Corp. 12.56% 13.52% 13.23% 13.99%
RTX Corp. 20.38% 19.40% 15.08% 25.93%

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
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 7,474 ÷ 36,602 = 20.42%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Northrop Grumman Corp. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

Northrop Grumman Corp., operating profit margin 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)
Operating income 3,601 5,651 4,065 3,969 3,780
Sales 36,602 35,667 36,799 33,841 30,095
Profitability Ratio
Operating profit margin1 9.84% 15.84% 11.05% 11.73% 12.56%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -5.33% -4.66% -21.95% -2.58%
Caterpillar Inc. 13.97% 14.27% 11.67% 16.33%
Eaton Corp. plc 14.55% 15.69% 11.45% 13.38%
GE Aerospace 6.05% 8.58% 5.49% 12.84%
Honeywell International Inc. 18.12% 18.03% 17.45% 18.66%
Lockheed Martin Corp. 12.65% 13.61% 13.22% 14.29%
RTX Corp. 8.07% 7.70% -3.34% 11.64%
Operating Profit Margin, Sector
Capital Goods 8.29% 9.11% 3.00% 10.93%
Operating Profit Margin, Industry
Industrials 9.34% 9.80% 4.43% 9.67%

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
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 3,601 ÷ 36,602 = 9.84%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Northrop Grumman Corp. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Net Profit Margin

Northrop Grumman Corp., net profit margin 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
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%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -7.41% -6.75% -20.42% -0.83%
Caterpillar Inc. 11.85% 13.47% 7.68% 12.00%
Eaton Corp. plc 11.86% 10.92% 7.90% 10.34%
GE Aerospace 0.31% -9.17% 7.81% -5.69%
Honeywell International Inc. 14.00% 16.11% 14.64% 16.73%
Lockheed Martin Corp. 8.69% 9.42% 10.45% 10.42%
RTX Corp. 7.75% 6.00% -6.22% 7.19%
Net Profit Margin, Sector
Capital Goods 5.27% 3.71% 1.85% 5.03%
Net Profit Margin, Industry
Industrials 5.27% 6.43% 1.43% 3.90%

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 Click competitor name to see calculations.

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

Return on Equity (ROE)

Northrop Grumman Corp., ROE 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
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%
Benchmarks
ROE, Competitors2
Boeing Co.
Caterpillar Inc. 42.25% 39.37% 19.56% 41.77%
Eaton Corp. plc 14.45% 13.06% 9.44% 13.75%
GE Aerospace 0.62% -16.17% 16.04% -17.58%
Honeywell International Inc. 29.74% 29.85% 27.23% 33.22%
Lockheed Martin Corp. 61.86% 57.62% 113.60% 199.23%
RTX Corp. 7.16% 5.29% -4.88% 13.25%
ROE, Sector
Capital Goods 13.39% 8.48% 4.42% 18.11%
ROE, Industry
Industrials 15.53% 16.58% 3.94% 13.76%

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

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Northrop Grumman Corp. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Return on Assets (ROA)

Northrop Grumman Corp., ROA 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
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%
Benchmarks
ROA, Competitors2
Boeing Co. -3.60% -3.03% -7.80% -0.48%
Caterpillar Inc. 8.18% 7.84% 3.83% 7.77%
Eaton Corp. plc 7.03% 6.30% 4.43% 6.74%
GE Aerospace 0.12% -3.28% 2.25% -1.87%
Honeywell International Inc. 7.97% 8.60% 7.40% 10.47%
Lockheed Martin Corp. 10.84% 12.41% 13.47% 13.11%
RTX Corp. 3.27% 2.39% -2.17% 3.96%
ROA, Sector
Capital Goods 2.84% 1.86% 0.80% 2.72%
ROA, Industry
Industrials 3.46% 3.83% 0.74% 2.39%

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 Click competitor name to see calculations.

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