Northrop Grumman Corporation (NOC)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 2,537,000 3,836,000 3,664,000 3,651,000 3,601,000 3,437,000 3,636,000 3,726,000 5,651,000 6,061,000 6,003,000 5,953,000 4,065,000 4,049,000 4,015,000 3,967,000 3,969,000 3,776,000 3,997,000 3,868,000
Long-term debt US$ in thousands 13,786,000 13,793,000 13,796,000 13,770,000 11,805,000 11,803,000 12,834,000 12,825,000 12,777,000 12,774,000 12,764,000 12,764,000 14,261,000 14,260,000 14,259,000 14,299,000 12,770,000 15,200,000 15,400,000 14,800,000
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
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,537,000K ÷ ($13,786,000K + $14,795,000K)
= 8.88%

Northrop Grumman Corp.'s return on total capital has shown a downward trend from 14.27% as of March 31, 2022, to 8.88% as of December 31, 2023. This decline indicates a decrease in the company's ability to generate returns from its total capital investment. It is essential for the company to closely examine the factors contributing to this decline and consider implementing strategies to improve the efficiency of its capital allocation and utilization. Additionally, the company may need to reevaluate its investment decisions and operational performance to enhance its return on total capital in the future.


Peer comparison

Dec 31, 2023