Northrop Grumman Corporation (NOC)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	13,786,000	11,805,000	12,777,000	14,261,000	12,770,000
Total assets	US$ in thousands	46,544,000	43,755,000	42,579,000	44,469,000	41,089,000
Debt-to-assets ratio		0.30	0.27	0.30	0.32	0.31

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,786,000K ÷ $46,544,000K
= 0.30

The debt-to-assets ratio of Northrop Grumman Corp. has shown a relatively stable trend over the past five years, ranging from 0.27 to 0.32. This ratio indicates the proportion of the company's assets that are financed through debt. A lower ratio suggests that a larger portion of the company's assets is funded by equity rather than debt.

The slight increase in the debt-to-assets ratio from 2022 to 2023 may signify a rise in the company's debt relative to its assets. However, with the ratio still below 0.5, it indicates that Northrop Grumman Corp. has a conservative level of leverage and is not overly reliant on debt financing. This may reflect positively on the company's financial stability and creditworthiness.

Overall, the trend of the debt-to-assets ratio suggests that Northrop Grumman Corp. has maintained a balanced capital structure over the past five years, with the company effectively managing its debt and asset levels to support sustained growth and financial health.