Northrop Grumman Corporation (NOC)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,174,000	2,056,000	4,896,000	7,005,000	3,189,000
Revenue	US$ in thousands	41,033,000	39,290,000	36,602,000	35,667,000	36,799,000
Net profit margin		10.17%	5.23%	13.38%	19.64%	8.67%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $4,174,000K ÷ $41,033,000K
= 10.17%

To analyze Northrop Grumman Corporation's net profit margin over the past five years, we observe the following trend:

- In December 2020, the net profit margin was 8.67%, indicating that the company retained approximately 8.67% of its total revenue as profit after all expenses were deducted.

- By December 2021, the net profit margin had significantly improved to 19.64%, suggesting a notable increase in efficiency and profitability within a year.

- However, in December 2022, the net profit margin declined to 13.38%, indicating a reduction in the company's ability to convert revenue into profit compared to the previous year.

- The trend continued in December 2023, where the net profit margin dropped further to 5.23%, signaling potential challenges or increased costs impacting profitability.

- In December 2024, there was a modest improvement in the net profit margin to 10.17%, although it remained below the levels seen in 2021.

Overall, the net profit margin of Northrop Grumman Corporation has displayed fluctuations over the past five years, with significant improvement in 2021 followed by some instability in the subsequent years. It is essential for the company to closely monitor its expenses, operational efficiency, and revenue generation to sustain and potentially enhance its profitability going forward.