Northrop Grumman Corporation (NOC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	14,795,000	15,312,000	12,926,000	10,579,000	8,819,000
Debt-to-capital ratio		0.48	0.44	0.50	0.57	0.59

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,786,000K ÷ ($13,786,000K + $14,795,000K)
= 0.48

The debt-to-capital ratio of Northrop Grumman Corp. has shown a fluctuating trend over the past five years. As of December 31, 2023, the ratio stood at 0.48, indicating that the company financed 48% of its capital structure through debt. This represented an increase from the previous year's ratio of 0.44.

The upward movement in the ratio from 2022 to 2023 suggests a higher level of debt relative to capital. However, it is important to note that the ratio had decreased from 0.57 in 2020 to 0.50 in 2021, before the subsequent decrease in 2022. The peak ratio of 0.59 in 2019 indicates that the company relied more heavily on debt for its capital structure in that year.

Overall, the trend in the debt-to-capital ratio for Northrop Grumman Corp. reflects changes in the balance between debt and equity financing over the years, with the company exhibiting fluctuations in its reliance on debt to fund its operations and investments.