Northrop Grumman Corporation (NOC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,056,000 | 4,896,000 | 7,005,000 | 3,189,000 | 2,248,000 |
| Total stockholders’ equity | US$ in thousands | 14,795,000 | 15,312,000 | 12,926,000 | 10,579,000 | 8,819,000 |
| ROE | 13.90% | 31.97% | 54.19% | 30.14% | 25.49% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,056,000K ÷ $14,795,000K
= 13.90%
Northrop Grumman Corp.'s return on equity (ROE) has exhibited variability over the past five years, ranging from 13.90% in 2023 to 54.19% in 2021. The substantial decrease in ROE from 2021 to 2023 indicates a decline in the firm's ability to generate profits from shareholders' equity. This suggests that the company's profitability and efficiency in utilizing shareholder funds have weakened over this period. Further analysis is necessary to identify the specific factors driving this decline in ROE and to assess the company's ability to improve its profitability and efficiency in the future.
Peer comparison
Dec 31, 2023
Company name
Symbol
ROE
Northrop Grumman Corporation
NOC
13.90%
Garmin Ltd
GRMN
18.39%
L3Harris Technologies Inc
LHX
6.54%
Nextracker Inc. Class A Common Stock
NXT
31.87%
Teledyne Technologies Incorporated
TDY
9.61%