Northrop Grumman Corporation (NOC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 89.58% | 88.89% | 88.79% | 88.74% | 88.76% | 85.97% | 86.10% | 86.26% | 86.62% | 92.51% | 92.68% | 93.08% | 93.27% | 92.99% | 93.10% | 93.15% | 93.14% | 93.03% | 92.55% | 74.61% |
| Operating profit margin | 6.46% | 9.92% | 9.67% | 9.84% | 9.84% | 9.76% | 10.40% | 10.55% | 15.84% | 16.28% | 15.96% | 15.94% | 11.05% | 11.47% | 11.57% | 11.58% | 11.73% | 11.35% | 12.15% | 12.26% |
| Pretax margin | 5.97% | 14.36% | 14.59% | 15.33% | 15.94% | 19.11% | 19.78% | 20.01% | 25.06% | 15.84% | 15.40% | 15.24% | 10.13% | 8.08% | 7.90% | 7.49% | 7.53% | 10.58% | 11.64% | 11.97% |
| Net profit margin | 5.23% | 12.07% | 12.27% | 12.89% | 13.38% | 15.70% | 16.23% | 16.33% | 19.64% | 12.42% | 12.09% | 12.10% | 8.67% | 6.94% | 6.91% | 6.57% | 6.64% | 9.05% | 10.11% | 10.31% |
The profitability ratios of Northrop Grumman Corp. indicate its ability to generate profits from its operations.
The gross profit margin, which represents the percentage of revenue retained after accounting for the cost of goods sold, has experienced some fluctuation. It decreased from 20.96% in March 2022 to 16.67% in December 2023 before gradually increasing to 20.40% in September 2023. This may indicate variations in the company's pricing strategy or changes in the cost of goods sold.
The operating profit margin, which reflects the company's ability to control its operating expenses, also exhibits variability, declining from 10.55% in March 2022 to 6.46% in December 2023, before recovering to 9.92% in September 2023. This suggests that Northrop Grumman Corp. may have experienced challenges in managing its operating costs.
The pretax margin, which indicates the company's profitability after accounting for all operating expenses and non-operating expenses, decreased from 20.01% in March 2022 to 5.97% in December 2023 before gradually rising to 14.36% in September 2023. This significant fluctuation may reflect changes in non-operating income or expenses.
The net profit margin, which represents the percentage of revenue remaining after all expenses, including taxes, has also shown variability, declining from 16.33% in March 2022 to 5.23% in December 2023, before recovering to 12.07% in September 2023. This suggests that the company's overall profitability has been subject to fluctuations in both operating and non-operating factors.
Overall, Northrop Grumman Corp.'s profitability ratios indicate some level of instability over the periods analyzed, which may be attributed to various factors such as changes in costs, expenses, and non-operating income. Further analysis of the underlying reasons for these fluctuations would provide valuable insights into the company's financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.42% | 10.40% | 10.19% | 10.81% | 11.19% | 12.93% | 13.54% | 13.76% | 16.45% | 10.92% | 10.79% | 10.90% | 7.17% | 5.47% | 5.51% | 5.21% | 5.47% | 7.43% | 8.40% | 8.18% |
| Return on total capital | 8.88% | 12.91% | 12.51% | 12.63% | 13.28% | 13.35% | 13.73% | 14.27% | 21.99% | 25.05% | 25.08% | 25.56% | 16.36% | 16.37% | 16.75% | 16.98% | 18.38% | 15.15% | 16.24% | 16.43% |
| Return on equity (ROE) | 13.90% | 29.33% | 30.02% | 31.60% | 31.97% | 39.63% | 41.56% | 43.39% | 54.19% | 40.51% | 40.71% | 42.91% | 30.14% | 23.41% | 24.68% | 24.86% | 25.49% | 30.96% | 36.08% | 37.21% |
Northrop Grumman Corp.'s profitability ratios reflect its ability to generate earnings relative to its assets, capital, and equity. The operating return on assets (Operating ROA) declined from 8.23% to 5.45% from Q4 2022 to Q4 2023, indicating a decrease in operating income generated per dollar of assets. Similarly, the return on assets (ROA) decreased from 11.19% to 4.42% during the same period, suggesting a decline in overall profitability.
The returns on total capital and equity also exhibited a downward trend, with the return on total capital falling from 13.28% to 8.88% and the return on equity dropping from 31.97% to 13.90% between Q4 2022 and Q4 2023. These reductions imply a decrease in the returns generated for both the company's total capital and shareholder equity.
The variations in these ratios over time indicate a change in the company's ability to generate profits from its operational and capital assets. Further analysis and consideration of the company's financial and operational developments may be needed to fully interpret these shifts in profitability.
See also:
Northrop Grumman Corporation Profitability Ratios (Quarterly Data)