Northrop Grumman Corporation (NOC)

Debt-to-equity 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-equity ratio		0.96	1.00	1.03	1.04	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

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 few years, indicating a positive development in the company's capital structure. From a ratio of 1.58 as of March 31, 2020, the ratio has consistently decreased to 0.96 as of December 31, 2024.

This declining trend suggests that Northrop Grumman has been reducing its reliance on debt financing in comparison to equity, which could be viewed positively by creditors and investors alike. A lower debt-to-equity ratio generally signifies a lower financial risk for the company as it indicates a lower proportion of debt in the capital structure, potentially leading to lower interest expenses and increased financial stability.

The consistent decrease in the debt-to-equity ratio indicates that Northrop Grumman has been effectively managing its debt levels and leveraging its equity to support its operations and growth. This trend suggests that the company has been successful in maintaining a healthy balance between debt and equity financing, which can enhance its financial performance and overall stability in the long run.