Northrop Grumman Corporation (NOC)

Solvency ratios

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
Debt-to-assets ratio 0.30 0.30 0.31 0.31 0.30 0.31 0.30 0.31 0.27 0.28 0.31 0.31 0.30 0.30 0.30 0.31 0.32 0.32 0.33 0.33
Debt-to-capital ratio 0.49 0.50 0.51 0.51 0.48 0.46 0.47 0.48 0.44 0.46 0.48 0.49 0.50 0.53 0.53 0.55 0.57 0.58 0.59 0.61
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
Financial leverage ratio 3.23 3.27 3.33 3.36 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

Solvency Ratios Analysis of Northrop Grumman Corporation

1. Debt-to-assets ratio: Northrop Grumman has consistently maintained a low debt-to-assets ratio over the past five years. The ratio has remained relatively stable around 0.30 to 0.33, indicating that the company's level of debt in relation to its total assets is moderate and manageable.

2. Debt-to-capital ratio: The debt-to-capital ratio of Northrop Grumman has shown a decreasing trend from 0.61 in March 2020 to 0.30 in December 2024. This demonstrates the company's ability to reduce its reliance on debt financing and increase its capital base over time.

3. Debt-to-equity ratio: The debt-to-equity ratio of Northrop Grumman has exhibited a declining pattern from 1.58 in March 2020 to 0.96 in December 2024. This indicates that the company has been gradually reducing its debt levels in comparison to its equity, which is a positive sign of improving financial health.

4. Financial leverage ratio: Northrop Grumman's financial leverage ratio has shown a decreasing trend over the years, dropping from 4.77 in March 2020 to 3.23 in December 2024. This signifies a decline in the company's reliance on debt to finance its operations and investments.

In conclusion, Northrop Grumman Corporation's solvency ratios reflect a prudent and balanced approach towards managing its debt levels and capital structure. The consistent improvement in these ratios over the years indicates the company's efforts to strengthen its financial position and enhance long-term stability.

Coverage ratios

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
Interest coverage 7.04 4.90 4.89 4.73 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

The interest coverage ratio of Northrop Grumman Corporation has shown some fluctuations over the past several quarters. The ratio measures the company's ability to meet its interest obligations with its operating income.

From March 31, 2020, to December 31, 2021, the interest coverage ratio steadily increased from 7.70 to 10.16, indicating a strong ability to cover interest expenses. However, from March 31, 2022, to December 31, 2024, the ratio decreased to 4.66, reflecting a decline in the company's ability to cover its interest expenses with its operating income.

The declining trend in the interest coverage ratio from 2022 to 2024 may raise concerns about Northrop Grumman Corporation's ability to handle its interest payments. It would be important for the company to closely monitor this ratio and take necessary actions to improve it, such as increasing operating income or reducing interest expenses, to ensure financial stability and meet its debt obligations in the future.

See also:

Northrop Grumman Corporation Solvency Ratios (Quarterly Data)