Northrop Grumman Corporation (NOC)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,174,000	2,056,000	4,896,000	7,005,000	3,189,000
Total stockholders’ equity	US$ in thousands	15,290,000	14,795,000	15,312,000	12,926,000	10,579,000
ROE		27.30%	13.90%	31.97%	54.19%	30.14%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,174,000K ÷ $15,290,000K
= 27.30%

Northrop Grumman Corporation's Return on Equity (ROE) has shown fluctuations over the past five years. In December 2020, the ROE was 30.14%, indicating that for every dollar of equity investment, the company generated 30.14 cents in profit. The ROE increased significantly to 54.19% by December 2021, reflecting improved profitability and efficiency in the utilization of shareholder equity.

However, in December 2022, the ROE decreased to 31.97%, suggesting a lower return relative to the previous year. By December 2023, the ROE further declined to 13.90%, signifying a substantial reduction in profitability and efficiency in utilizing equity investments.

In the most recent data available for December 2024, the ROE improved to 27.30%, indicating a partial recovery in the company's ability to generate profits from shareholder equity. It is essential for Northrop Grumman Corporation to consistently monitor and enhance its ROE to ensure sustainable growth and value creation for its shareholders.