Northrop Grumman Corporation (NOC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,346,000 | 5,836,000 | 8,938,000 | 3,728,000 | 2,548,000 |
| Revenue | US$ in thousands | 39,290,000 | 36,602,000 | 35,667,000 | 36,799,000 | 33,841,000 |
| Pretax margin | 5.97% | 15.94% | 25.06% | 10.13% | 7.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,346,000K ÷ $39,290,000K
= 5.97%
The pretax margin of Northrop Grumman Corp. has exhibited significant fluctuations over the past five years. In 2021, the pretax margin was at its highest at 25.06%, indicating that the company was able to generate approximately 25.06 cents in pretax profit for every dollar of revenue. This was a substantial increase from the 10.13% pretax margin in 2020.
However, there was a notable decline in the pretax margin in 2023, which decreased to 5.97%. This suggests that the company's ability to generate pretax profit relative to its revenue has weakened compared to the previous year. Additionally, the pretax margin in 2022 was 15.94%, indicating a decrease from the peak in 2021.
The fluctuations in pretax margin may be indicative of changes in the company's cost structure, pricing strategies, or overall operational efficiency. Further analysis of the company's financial and operational data would provide valuable insights into the factors driving these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023