Northrop Grumman Corporation (NOC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 46,544,000 | 43,755,000 | 42,579,000 | 44,469,000 | 41,089,000 |
| Operating ROA | 5.45% | 8.23% | 13.27% | 9.14% | 9.66% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,537,000K ÷ $46,544,000K
= 5.45%
Based on the data provided, Northrop Grumman Corp.'s operating return on assets (operating ROA) has shown a declining trend over the past five years, decreasing from 9.66% in 2019 to 5.45% in 2023. This indicates that the company's ability to generate operating income from its assets has weakened over the period. The declining trend suggests that the company may be facing challenges in efficiently utilizing its assets to generate operating profits. It would be beneficial for stakeholders to further investigate the reasons behind this decline to assess the company's operational performance and identify potential areas for improvement.
Peer comparison
Dec 31, 2023