Northrop Grumman Corporation (NOC)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	14,692,000	14,689,000	14,706,000	14,742,000	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
Total stockholders’ equity	US$ in thousands	15,290,000	14,748,000	14,301,000	14,223,000	14,795,000	15,928,000	15,486,000	15,136,000	15,312,000	13,943,000	13,651,000	13,287,000	12,926,000	11,417,000	11,172,000	10,525,000	10,579,000	10,467,000	9,712,000	9,062,000
Debt-to-capital ratio		0.49	0.50	0.51	0.51	0.48	0.46	0.47	0.48	0.44	0.46	0.48	0.49	0.50	0.53	0.53	0.55	0.57	0.58	0.59	0.61

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 been gradually decreasing over the past few years, indicating a favorable trend towards lower reliance on debt in the company's capital structure. As of the most recent reporting period, December 31, 2024, the debt-to-capital ratio stood at 0.49, which implies that debt accounted for 49% of the company's total capital. This reduction in the debt-to-capital ratio suggests improved financial stability and lower financial risk for Northrop Grumman, as the company is using less debt financing relative to its equity. Overall, the downward trend in the debt-to-capital ratio reflects a prudent financial management strategy and stronger financial position for Northrop Grumman Corporation.