Northrop Grumman Corporation (NOC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 5,016,000 | 2,346,000 | 5,836,000 | 8,938,000 | 3,728,000 |
| Revenue | US$ in thousands | 41,033,000 | 39,290,000 | 36,602,000 | 35,667,000 | 36,799,000 |
| Pretax margin | 12.22% | 5.97% | 15.94% | 25.06% | 10.13% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $5,016,000K ÷ $41,033,000K
= 12.22%
The pretax margin for Northrop Grumman Corporation has exhibited fluctuations over the years. In 2020, the pretax margin stood at 10.13%, reflecting the company's ability to generate profits before taxes relative to its revenue. Subsequently, there was a significant increase in the pretax margin, reaching 25.06% by the end of 2021, indicating improved operational efficiency and cost management.
However, in 2022, there was a decline in the pretax margin to 15.94%, signaling potential challenges or increased costs impacting the company's profitability. This trend continued into 2023, with the pretax margin dropping further to 5.97%, raising concerns about the company's profit generation capabilities during that period.
Nonetheless, in 2024, there was a recovery in the pretax margin, which increased to 12.22%. This uptick suggests that Northrop Grumman Corporation may have implemented strategic measures to enhance profitability and operational performance.
Overall, the fluctuations in the pretax margin of Northrop Grumman Corporation point to the company's responsiveness to changing business conditions and the challenges it faces in achieving consistent profitability over the years.
Peer comparison
Dec 31, 2024