Northrop Grumman Corporation (NOC)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	4,174,000	2,375,000	2,286,000	2,158,000	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
Total stockholders’ equity	US$ in thousands	15,290,000	14,748,000	14,301,000	14,223,000	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
ROE		27.30%	16.10%	15.98%	15.17%	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%

December 31, 2024 calculation

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

Northrop Grumman Corporation's return on equity (ROE) has fluctuated over the period from March 31, 2020, to December 31, 2024. The ROE is a measure of a company's profitability in relation to shareholders' equity.

From March 31, 2020, to December 31, 2020, the company's ROE showed a general increasing trend, reaching a peak of 54.19% in December 2021. This indicates an efficient utilization of shareholders' equity to generate profits during this period.

However, from March 31, 2022, to December 31, 2024, the ROE experienced a declining trend, with a significant drop to 13.90% in December 2023. This decline suggests a potential decrease in profitability relative to the shareholders' equity.

Overall, Northrop Grumman Corporation's ROE exhibited both positive and negative movements over the observed period, reflecting changes in the company's ability to generate profits from the equity invested by shareholders. Further analysis of the company's financial performance and strategic decisions may be necessary to understand the factors driving these fluctuations in ROE.