Northrop Grumman Corporation (NOC)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	2,056,000	4,671,000	4,649,000	4,783,000	4,896,000	5,526,000	5,674,000	5,765,000	7,005,000	4,625,000	4,548,000	4,516,000	3,189,000	2,450,000	2,397,000	2,253,000	2,248,000	3,013,000	3,324,000	3,252,000
Total stockholders’ equity	US$ in thousands	14,795,000	15,928,000	15,486,000	15,136,000	15,312,000	13,943,000	13,651,000	13,287,000	12,926,000	11,417,000	11,172,000	10,525,000	10,579,000	10,467,000	9,712,000	9,062,000	8,819,000	9,731,000	9,214,000	8,739,000
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,056,000K ÷ $14,795,000K
= 13.90%

Northrop Grumman Corp.'s return on equity (ROE) shows a notable declining trend over the past eight quarters, from 43.39% at the end of March 2022 to 13.90% at the end of December 2023. This decreasing trend indicates a reduction in the company's ability to generate profits from its shareholders' equity. While ROE can be influenced by various factors, a declining trend may raise concerns about the company's overall profitability and efficiency in utilizing its equity. Further analysis of the company's financial performance and potential reasons for the declining ROE would be necessary to assess the company's financial health accurately.