Northrop Grumman Corporation (NOC)

Financial leverage 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
Total assets	US$ in thousands	46,544,000	44,896,000	45,609,000	44,244,000	43,755,000	42,733,000	41,914,000	41,903,000	42,579,000	42,346,000	42,142,000	41,423,000	44,469,000	44,772,000	43,475,000	43,203,000	41,089,000	40,553,000	39,584,000	39,751,000
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
Financial leverage ratio		3.15	2.82	2.95	2.92	2.86	3.06	3.07	3.15	3.29	3.71	3.77	3.94	4.20	4.28	4.48	4.77	4.66	4.17	4.30	4.55

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 some fluctuation over the past eight quarters, ranging from a low of 2.82 to a high of 3.15. This ratio measures the extent to which the company is using debt to finance its assets, with a higher ratio indicating higher financial leverage.

The upward trend in the financial leverage ratio from the third quarter of 2022 to the first quarter of 2023 suggests an increasing reliance on debt financing during that period. However, the ratio decreased in the second and third quarters of 2023, which indicates a reduced level of financial leverage and potentially lower risk associated with debt.

It is important to consider the industry and economic context in interpreting changes in the financial leverage ratio. Overall, the company's financial leverage ratio has shown some variability, and it will be important to monitor this trend in the context of the company's overall financial strategy and market conditions.