Northrop Grumman Corporation (NOC)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	46,544,000	44,896,000	45,609,000	44,244,000	43,755,000	42,733,000	41,914,000	41,903,000	42,579,000	42,346,000	42,142,000	41,423,000	44,469,000	44,772,000	43,475,000	43,203,000	41,089,000	40,553,000	39,584,000	39,751,000
Debt-to-assets ratio		0.30	0.31	0.30	0.31	0.27	0.28	0.31	0.31	0.30	0.30	0.30	0.31	0.32	0.32	0.33	0.33	0.31	0.37	0.39	0.37

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 measures the proportion of a company's assets that are financed by debt. Northrop Grumman Corp.'s debt-to-assets ratio has fluctuated between 0.27 and 0.31 over the past eight quarters, indicating a relatively stable level of debt compared to its asset base. This suggests that the company has been effectively managing its debt levels in relation to its assets. A decreasing ratio could indicate a reduction in debt relative to assets, potentially signaling improved financial strength. Conversely, an increasing ratio may indicate a higher reliance on debt financing, which could pose risks in the form of higher interest payments and potential financial strain. However, fluctuations within a relatively narrow range might not warrant significant concern, but continued monitoring is advisable to assess any underlying trends impacting the company's financial leverage.