Northrop Grumman Corporation (NOC)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	35,196,000	32,487,000	30,893,000	32,119,000	30,219,000
Revenue	US$ in thousands	39,290,000	36,602,000	35,667,000	36,799,000	33,841,000
Gross profit margin		89.58%	88.76%	86.62%	87.28%	89.30%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $35,196,000K ÷ $39,290,000K
= 89.58%

The gross profit margin of Northrop Grumman Corp. has shown a declining trend over the past five years. From 21.45% in 2019, it decreased to 16.67% in 2023. This indicates that the company's ability to generate profits from its core business operations has weakened. A declining gross profit margin could suggest increased production costs, changes in pricing strategies, or a shift in the product mix. This trend warrants further investigation into the company's cost control measures and pricing strategies to understand the factors contributing to the decrease in gross profit margin.