Northrop Grumman Corporation (NOC)

Debt-to-equity 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-equity ratio		0.93	0.87	0.89	0.91	0.77	0.85	0.94	0.97	0.99	1.12	1.14	1.21	1.35	1.36	1.47	1.58	1.45	1.56	1.67	1.69

December 31, 2023 calculation

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

Based on the data provided, Northrop Grumman Corp.'s debt-to-equity ratio fluctuated over the past eight quarters. The ratio was at its lowest at 0.77 in December 2022 and reached its peak at 0.97 in March 2022. This indicates that the company's debt relative to its equity has varied significantly over this period.

The trend shows that the debt-to-equity ratio generally decreased from December 2022 to September 2023, suggesting a reduction in the company's reliance on debt to finance its operations. However, the ratio then increased slightly in the following quarter, September 2023, to 0.87.

The overall pattern indicates that Northrop Grumman Corp. has experienced fluctuations in its capital structure over the past eight quarters, with a general trend of reducing its debt relative to its equity. This may imply a more conservative approach to financing and a potentially lower financial risk for the company. However, it is important to note that a single ratio does not provide a complete picture of a company's financial health, and other factors should be considered when evaluating its overall financial condition.