Northrop Grumman Corporation (NOC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	15,290,000	14,795,000	15,312,000	12,926,000	10,579,000
Debt-to-capital ratio		0.49	0.48	0.44	0.50	0.57

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,692,000K ÷ ($14,692,000K + $15,290,000K)
= 0.49

The debt-to-capital ratio of Northrop Grumman Corporation has shown a downward trend over the past five years. As of December 31, 2020, the ratio was 0.57, indicating that 57% of the company's capital was financed through debt. By December 31, 2024, the ratio had decreased to 0.49, showing that 49% of the capital was funded by debt.

This decline in the debt-to-capital ratio suggests that Northrop Grumman has been gradually reducing its reliance on debt financing in relation to its total capital structure. A lower debt-to-capital ratio generally indicates a healthier financial position, as it implies a lower level of financial leverage and potentially less risk for the company.

Overall, the decreasing trend in the debt-to-capital ratio of Northrop Grumman Corporation implies a positive development in the company's capital structure and may be viewed favorably by investors and creditors.