Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Northrop Grumman Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Trade accounts payable
Accrued employee compensation
Advance payments and billings in excess of costs incurred
Current portion of long-term debt
Other current liabilities
Liabilities of disposal group held for sale
Current liabilities
Long-term debt, net of current portion
Pension and other postretirement benefit plan liabilities
Non-current operating lease liabilities
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
Total liabilities
Preferred stock, $1 par value; no shares issued and outstanding
Common stock, $1 par value
Paid-in capital
Retained earnings
Accumulated other comprehensive loss
Shareholders’ equity
Total liabilities and shareholders’ 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.