Northrop Grumman Corporation (NOC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,537,000 | 3,601,000 | 5,651,000 | 4,065,000 | 3,969,000 |
| Revenue | US$ in thousands | 39,290,000 | 36,602,000 | 35,667,000 | 36,799,000 | 33,841,000 |
| Operating profit margin | 6.46% | 9.84% | 15.84% | 11.05% | 11.73% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,537,000K ÷ $39,290,000K
= 6.46%
The operating profit margin of Northrop Grumman Corp. has exhibited a declining trend over the past five years, dropping from 11.73% in 2019 to 6.46% in 2023. This indicates a decrease in the company's ability to generate profits from its core operations. The decline could be attributed to various factors such as changes in revenue, cost structure, or operational inefficiencies. Northrop Grumman may need to address these issues in order to improve its operating profit margin and enhance overall profitability. It is imperative for the company to closely monitor and manage its operating expenses and revenue generation to reverse this trend.
Peer comparison
Dec 31, 2023