Northrop Grumman Corporation (NOC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 49,359,000 | 46,544,000 | 43,755,000 | 42,579,000 | 44,469,000 |
| Total stockholders’ equity | US$ in thousands | 15,290,000 | 14,795,000 | 15,312,000 | 12,926,000 | 10,579,000 |
| Financial leverage ratio | 3.23 | 3.15 | 2.86 | 3.29 | 4.20 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $49,359,000K ÷ $15,290,000K
= 3.23
The financial leverage ratio of Northrop Grumman Corporation has shown a decreasing trend over the past five years. Starting at 4.20 in 2020, the ratio decreased to 3.29 in 2021, further declining to 2.86 in 2022, before slightly increasing to 3.15 in 2023, and reaching 3.23 in 2024.
This indicates that the company has been relying less on debt financing relative to equity in recent years, which can be a positive sign of financial stability and strength. A decreasing financial leverage ratio suggests that the company's financial risk may be decreasing as well, as it indicates a lower level of debt in relation to equity in its capital structure. However, it is essential to consider the specific industry and company context when assessing the implications of this trend.
Peer comparison
Dec 31, 2024