Northrop Grumman Corporation (NOC)

Debt-to-equity 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-equity ratio		0.93	0.77	0.99	1.35	1.45

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,786,000K ÷ $14,795,000K
= 0.93

The debt-to-equity ratio measures the proportion of a company's financing that comes from debt versus equity. Northrop Grumman Corp.'s debt-to-equity ratio has fluctuated over the past five years. In 2023, the ratio stood at 0.93, indicating that the company had $0.93 in debt for every $1 of equity. This represents an increase from the previous year, signifying a higher reliance on debt to finance its operations. In 2022, the ratio was 0.77, suggesting a relatively lower level of debt compared to equity. The ratio then spiked to 0.99 in 2021, before experiencing a significant jump to 1.35 in 2020 and 1.45 in 2019. These higher ratios imply a greater proportion of debt in the company's capital structure, potentially indicating increased financial leverage and associated risk. It would be essential for stakeholders to closely monitor these trends to assess Northrop Grumman Corp.'s financial risk and capital structure strategy.