Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Paying user area
Try for free
Northrop Grumman Corp. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Northrop Grumman Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Northrop Grumman Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The financial data reveals several notable trends in the composition of liabilities and shareholders' equity over the five-year period ending in 2022.
- Current Liabilities
-
The proportion of current liabilities relative to total liabilities and shareholders' equity shows some fluctuation but generally remains within a narrow range until a marked increase in 2022. Specifically, current liabilities were 21.97% in 2018, rising slightly and dipping intermittently around 22%, before a significant jump to 26.48% in 2022. This change appears driven primarily by an increase in advance payments and billings in excess of costs incurred, which rose steadily from 5.09% in 2018 to 8.25% in 2022, reflecting growing liabilities connected to customer advances or contract accounting.
Trade accounts payable decreased from 5.8% in 2018 to 4.06% in 2020 but then recovered to 5.91% in 2022. Accrued employee compensation remained relatively stable, with a slight upward trend from 4.45% to 4.7% over the timeframe. The current portion of long-term debt fluctuated but notably dropped to near zero in 2021, then rose again to 2.45% in 2022.
- Non-Current Liabilities
-
The share of non-current liabilities steadily declined, shifting from 56.28% in 2018 to 38.52% in 2022. Within this category, the net long-term debt portion decreased significantly from 36.87% to 26.98%, indicating debt reduction or reclassification of some liabilities as current.
Pension and other postretirement benefit plan liabilities experienced a sharp decrease over the period, dropping from 15.28% in 2018 to a mere 2.72% in 2022, suggesting either a settlement of such obligations or changes in actuarial assumptions or funding status.
Non-current operating lease liabilities, a relatively new line item starting in 2019, increased moderately from 3.18% to 4.17% in 2022, reflecting possible lease commitments or capitalized leases recognition.
- Total Liabilities and Shareholders’ Equity
-
Total liabilities as a percentage of total liabilities and shareholders’ equity decreased from 78.26% in 2018 to 65.01% in 2022. This substantial decline indicates an overall deleveraging or an increase in the equity base.
Shareholders’ equity, conversely, increased from 21.74% to 34.99%, driven mainly by rising retained earnings, which grew from 21.43% to 34.99%. This upward trend in retained earnings highlights profitability and earnings retention contributing to enhanced equity.
Other equity components such as common stock and accumulated other comprehensive loss remained relatively flat, with minor decreases and slight increases respectively, contributing marginally to overall changes.
In summary, the data reflects a transition towards a stronger equity position with a simultaneous reduction in long-term debt and pension liabilities. The increase in current liabilities, particularly in advance billings, suggests evolving business operations impacting working capital. Overall, the entity appears to be managing debt levels downward while boosting retained earnings, thereby enhancing financial stability and potentially supporting future investment or growth opportunities.