Northrop Grumman Corporation (NOC)

Debt-to-equity 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-equity ratio		0.96	0.93	0.77	0.99	1.35

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,692,000K ÷ $15,290,000K
= 0.96

The debt-to-equity ratio of Northrop Grumman Corporation has shown a declining trend over the past five years. In 2020, the ratio was 1.35, indicating that the company had higher levels of debt relative to its equity. However, this ratio decreased to 0.99 in 2021, signaling an improvement in the company's financial leverage and a lower dependence on debt financing.

The decreasing trend continued as the debt-to-equity ratio further declined to 0.77 in 2022. This suggests that Northrop Grumman Corporation has been effectively managing its debt levels and increasing its equity base, which can enhance financial stability and investor confidence.

In 2023, the ratio saw a slight increase to 0.93, indicating a moderate uptick in debt relative to equity, but still maintaining a healthy balance overall. By the end of 2024, the ratio stood at 0.96, showing a steady yet slightly higher debt component compared to the previous year.

Overall, Northrop Grumman Corporation's debt-to-equity ratio trajectory reflects a generally positive trend towards a more balanced capital structure with a decreasing reliance on debt financing over the years.