Northrop Grumman Corporation (NOC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.30 | 0.27 | 0.30 | 0.32 |
| Debt-to-capital ratio | 0.49 | 0.48 | 0.44 | 0.50 | 0.57 |
| Debt-to-equity ratio | 0.96 | 0.93 | 0.77 | 0.99 | 1.35 |
| Financial leverage ratio | 3.23 | 3.15 | 2.86 | 3.29 | 4.20 |
Northrop Grumman Corporation's solvency ratios indicate a generally improving financial position over the years.
- The Debt-to-assets ratio has decreased consistently from 0.32 in 2020 to 0.30 in 2024. This decreasing trend suggests that the company has been able to reduce its reliance on debt to finance its assets over the years.
- The Debt-to-capital ratio has followed a similar pattern, declining from 0.57 in 2020 to 0.49 in 2024. This ratio indicates the proportion of the company's capital that is financed by debt, and the decrease suggests a strengthening capital structure.
- The Debt-to-equity ratio has also shown a downward trend, dropping from 1.35 in 2020 to 0.96 in 2024. This decreasing ratio implies that the company's reliance on debt in relation to equity has been reducing steadily.
- The Financial leverage ratio has decreased from 4.20 in 2020 to 3.23 in 2024, indicating a decline in the company's financial leverage. This ratio reflects the proportion of the company's assets that are financed by debt, and the decreasing trend suggests a more conservative approach to debt management.
Overall, Northrop Grumman Corporation's solvency ratios demonstrate a positive trajectory, with decreasing levels of debt relative to assets, capital, equity, and overall financial leverage over the years. This trend indicates an improved financial stability and a stronger solvency position for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 38.67 | 26.71 | 67.94 | 10.16 | 6.85 |
Based on the provided data, the interest coverage ratio of Northrop Grumman Corporation has shown a positive trend over the years. In December 2020, the interest coverage ratio was 6.85, indicating the company's ability to cover its interest expenses nearly 7 times. By December 2021, this ratio improved significantly to 10.16, suggesting a stronger ability to pay interest obligations from its operating income.
In December 2022, the interest coverage ratio notably jumped to 67.94, signifying a substantial increase in the company's ability to cover its interest payments, which could be due to increased operating income or reduced interest expenses. However, in December 2023, the ratio decreased to 26.71, although it remained at a relatively healthy level.
By December 2024, the interest coverage ratio improved to 38.67, indicating that Northrop Grumman Corporation continues to have a strong ability to meet its interest obligations from its operating earnings. Overall, the company's interest coverage ratio has exhibited a positive trend, reflecting a healthy financial position in terms of meeting its interest payment obligations.