Northrop Grumman Corporation (NOC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	8,819,000	9,731,000	9,214,000	8,739,000
Debt-to-capital ratio		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	0.59	0.61	0.63	0.63

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 fluctuations over the past eight quarters. The ratio, which measures the proportion of the company's capital structure funded by debt, has ranged from 0.44 to 0.49 during this period.

The ratio increased from 0.44 in December 2022 to 0.48 in March 2023, before declining to 0.46 in September 2023. This suggests that the company's reliance on debt within its capital structure has varied over the quarters. It is worth noting that a higher debt-to-capital ratio may indicate a higher financial risk, as a larger portion of the company's capital is funded by debt, while a lower ratio may indicate a more conservative financial approach.

Overall, Northrop Grumman Corp. should continue to monitor its debt-to-capital ratio to ensure an optimal capital structure that balances financial risk and cost of capital.