Northrop Grumman Corporation (NOC)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	14,692,000	13,786,000	11,805,000	12,777,000	14,261,000
Total assets	US$ in thousands	49,359,000	46,544,000	43,755,000	42,579,000	44,469,000
Debt-to-assets ratio		0.30	0.30	0.27	0.30	0.32

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $14,692,000K ÷ $49,359,000K
= 0.30

The debt-to-assets ratio of Northrop Grumman Corporation has shown a gradual decline over the period from December 31, 2020, to December 31, 2024, indicating an improvement in the company's financial position in terms of its leverage. The ratio decreased from 0.32 in 2020 to 0.30 in 2021 and remained stable in subsequent years, reaching 0.27 by the end of 2022 before slightly increasing back to 0.30 by the end of 2023 and maintaining the same level at the end of 2024.

A lower debt-to-assets ratio signifies that a smaller portion of the company's assets is financed by debt, indicating lower financial risk and potentially greater financial stability. This trend suggests that Northrop Grumman has been effectively managing its debt levels relative to its asset base over the analyzed period. However, maintaining a consistent ratio in the later years may imply that the company has reached an equilibrium in its debt and asset structure.

Overall, the declining trend followed by stability in the debt-to-assets ratio of Northrop Grumman reflects a prudent approach to managing its debt obligations and maintaining a healthy balance sheet position.