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Northrop Grumman Corp. (NYSE:NOC)

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 5.91 5.16 4.06 5.42 5.80
Accrued employee compensation 4.70 4.68 4.49 4.54 4.45
Advance payments and billings in excess of costs incurred 8.25 7.11 5.66 5.44 5.09
Current portion of long-term debt 2.45 0.01 1.67 2.70 1.37
Other current liabilities 5.17 5.42 5.08 4.86 5.26
Liabilities of disposal group held for sale 0.00 0.00 0.58 0.00 0.00
Current liabilities 26.48% 22.38% 21.54% 22.96% 21.97%
Long-term debt, net of current portion 26.98 30.01 32.07 31.08 36.87
Pension and other postretirement benefit plan liabilities 2.72 7.68 14.61 16.99 15.28
Non-current operating lease liabilities 4.17 3.73 3.02 3.18 0.00
Deferred tax liabilities 0.30 1.15 0.00 0.00 0.29
Other non-current liabilities 4.36 4.69 4.97 4.33 3.84
Non-current liabilities 38.52% 47.26% 54.67% 55.58% 56.28%
Total liabilities 65.01% 69.64% 76.21% 78.54% 78.26%
Preferred stock, $1 par value; no shares issued and outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $1 par value 0.35 0.37 0.38 0.41 0.45
Paid-in capital 0.00 0.00 0.13 0.00 0.00
Retained earnings 34.99 30.33 23.57 21.29 21.43
Accumulated other comprehensive loss -0.35 -0.34 -0.29 -0.24 -0.14
Shareholders’ equity 34.99% 30.36% 23.79% 21.46% 21.74%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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 capital structure of the entity has undergone a significant shift toward a lower leverage profile between 2018 and 2022. Total liabilities decreased from 78.26% to 65.01% of total liabilities and shareholders’ equity, while total shareholders’ equity increased from 21.74% to 34.99% over the same period. This indicates a strategic migration from debt-based financing toward equity-based funding, driven primarily by internal profit retention.

Non-Current Liability Trends
Non-current liabilities experienced a substantial contraction, falling from 56.28% in 2018 to 38.52% in 2022. This decline is most prominently attributed to the reduction in pension and other postretirement benefit plan liabilities, which plummeted from 15.28% to 2.72%. Additionally, long-term debt, net of current portions, followed a consistent downward trajectory, decreasing from 36.87% to 26.98% of the total balance sheet.
Current Liability Dynamics
In contrast to non-current obligations, current liabilities increased from 21.97% in 2018 to 26.48% in 2022. A key driver of this increase is the growth in advance payments and billings in excess of costs incurred, which rose from 5.09% to 8.25%, suggesting an increase in contract-based prepayments. Other current liability components, such as trade accounts payable and accrued employee compensation, remained relatively stable throughout the five-year period.
Equity Composition and Growth
The expansion of shareholders' equity was driven almost exclusively by an increase in retained earnings, which grew from 21.43% in 2018 to 34.99% in 2022. This suggests a strong capacity for organic capital accumulation. Common stock and paid-in capital represented a negligible and slightly declining portion of the total balance sheet. Accumulated other comprehensive loss showed a marginal increase in negative impact, moving from -0.14% to -0.35%.

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