Northrop Grumman Corporation (NOC)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,537,000	3,836,000	3,664,000	3,651,000	3,601,000	3,437,000	3,636,000	3,726,000	5,651,000	6,061,000	6,003,000	5,953,000	4,065,000	4,049,000	4,015,000	3,967,000	3,969,000	3,776,000	3,997,000	3,868,000
Interest expense (ttm)	US$ in thousands	545,000	537,000	518,000	502,000	506,000	519,000	529,000	534,000	556,000	583,000	605,000	623,000	593,000	563,000	532,000	515,000	528,000	540,000	550,000	557,000
Interest coverage		4.66	7.14	7.07	7.27	7.12	6.62	6.87	6.98	10.16	10.40	9.92	9.56	6.85	7.19	7.55	7.70	7.52	6.99	7.27	6.94

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,537,000K ÷ $545,000K
= 4.66

The interest coverage ratio for Northrop Grumman Corp. has been relatively stable over the past eight quarters, ranging from 4.66 to 7.27. This indicates that the company has consistently generated enough operating income to cover its interest expenses. A higher interest coverage ratio suggests that the company is in a better position to meet its interest obligations from its operating income. The consistent levels of interest coverage reflect the company's ability to manage its debt and generate sufficient earnings to cover its interest expenses. Overall, the interest coverage ratio demonstrates Northrop Grumman Corp.'s financial stability and ability to meet its interest obligations.