Northrop Grumman Corporation (NOC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,537,000 | 3,836,000 | 3,664,000 | 3,651,000 | 3,601,000 | 3,437,000 | 3,636,000 | 3,726,000 | 5,651,000 | 6,061,000 | 6,003,000 | 5,953,000 | 4,065,000 | 4,049,000 | 4,015,000 | 3,967,000 | 3,969,000 | 3,776,000 | 3,997,000 | 3,868,000 |
| Total assets | US$ in thousands | 46,544,000 | 44,896,000 | 45,609,000 | 44,244,000 | 43,755,000 | 42,733,000 | 41,914,000 | 41,903,000 | 42,579,000 | 42,346,000 | 42,142,000 | 41,423,000 | 44,469,000 | 44,772,000 | 43,475,000 | 43,203,000 | 41,089,000 | 40,553,000 | 39,584,000 | 39,751,000 |
| Operating ROA | 5.45% | 8.54% | 8.03% | 8.25% | 8.23% | 8.04% | 8.67% | 8.89% | 13.27% | 14.31% | 14.24% | 14.37% | 9.14% | 9.04% | 9.24% | 9.18% | 9.66% | 9.31% | 10.10% | 9.73% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,537,000K ÷ $46,544,000K
= 5.45%
The operating return on assets (operating ROA) measures the efficiency with which Northrop Grumman Corp. utilizes its assets to generate operating income. Looking at the data provided, it is evident that the operating ROA has shown fluctuations over the observed periods.
In the most recent period ending December 31, 2023, the operating ROA stood at 5.45%, indicating a decrease from the previous period. This decline in operating ROA may suggest that Northrop Grumman Corp. was less effective in generating operating income from its assets during this period.
Conversely, in the quarter ending September 30, 2023, the operating ROA increased significantly to 8.54%, signifying improved efficiency in utilizing assets to generate operating income. However, this positive trend was not sustained, as the operating ROA decreased in the subsequent quarter to 8.03% and then further to 8.25% in the quarter ending March 31, 2023.
Comparing these figures to the data from the same periods in the previous year, the operating ROA has shown a general decline. In June and March 2022, the operating ROA was higher at 8.67% and 8.89%, indicating that Northrop Grumman Corp. was more efficient in utilizing its assets to generate operating income in those periods.
In summary, the operating ROA for Northrop Grumman Corp. has exhibited fluctuations, with a general decrease in the most recent period. This highlights the importance of closely monitoring the company's asset utilization and operating income generation to maintain and improve its financial performance.
Peer comparison
Dec 31, 2023