Northrop Grumman Corporation (NOC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 46,544,000 | 43,755,000 | 42,579,000 | 44,469,000 | 41,089,000 |
| Total stockholders’ equity | US$ in thousands | 14,795,000 | 15,312,000 | 12,926,000 | 10,579,000 | 8,819,000 |
| Financial leverage ratio | 3.15 | 2.86 | 3.29 | 4.20 | 4.66 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $46,544,000K ÷ $14,795,000K
= 3.15
The financial leverage ratio of Northrop Grumman Corp. has exhibited fluctuating trends over the past five years. As of December 31, 2023, the ratio stands at 3.15, representing an increase from the previous year. This signifies that the company's reliance on debt to finance its operations has also increased.
In 2021, the financial leverage ratio was 3.29, after experiencing a significant decrease from 4.20 in 2020. This reduction suggests a possible deleveraging strategy or improved equity financing. However, the ratio was notably higher in 2019, at 4.66, indicating a higher proportion of debt in the company's capital structure.
The rising and falling pattern of the financial leverage ratio indicates fluctuations in Northrop Grumman Corp.'s debt utilization and equity base over the years, reflecting changing capital structure dynamics and the company's approach to leveraging. It would be important to further investigate the reasons behind these fluctuations to understand the underlying financial management strategies employed by the company.
Peer comparison
Dec 31, 2023