Debt to Equity
since 2005
Calculation
Northrop Grumman Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.84 | = | 12,877) | ÷ | 15,312) |
| Dec 31, 2021 | 0.99 | = | 12,783) | ÷ | 12,926) |
| Dec 31, 2020 | 1.42 | = | 15,003) | ÷ | 10,579) |
| Dec 31, 2019 | 1.57 | = | 13,879) | ÷ | 8,819) |
| Dec 31, 2018 | 1.76 | = | 14,400) | ÷ | 8,187) |
| Dec 31, 2017 | 2.17 | = | 15,266) | ÷ | 7,048) |
| Dec 31, 2016 | 1.34 | = | 7,070) | ÷ | 5,259) |
| Dec 31, 2015 | 1.18 | = | 6,526) | ÷ | 5,522) |
| Dec 31, 2014 | 0.82 | = | 5,928) | ÷ | 7,235) |
| Dec 31, 2013 | 0.56 | = | 5,930) | ÷ | 10,620) |
| Dec 31, 2012 | 0.41 | = | 3,935) | ÷ | 9,514) |
| Dec 31, 2011 | 0.38 | = | 3,940) | ÷ | 10,336) |
| Dec 31, 2010 | 0.36 | = | 4,819) | ÷ | 13,557) |
| Dec 31, 2009 | 0.34 | = | 4,282) | ÷ | 12,687) |
| Dec 31, 2008 | 0.33 | = | 3,920) | ÷ | 11,920) |
| Dec 31, 2007 | 0.23 | = | 4,029) | ÷ | 17,687) |
| Dec 31, 2006 | 0.24 | = | 4,067) | ÷ | 16,615) |
| Dec 31, 2005 | 0.30 | = | 5,095) | ÷ | 16,828) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
- Long-term Debt Trends
- The company’s long-term debt, including the current portion, showed a general upward trend over the period analyzed. Starting at US$5,095 million in 2005, it experienced some fluctuations, decreasing to a low of US$3,920 million in 2008 before rising significantly to peak at US$15,266 million in 2017. After this peak, long-term debt declined somewhat but remained elevated relative to earlier years, closing at US$12,877 million in 2022.
- Shareholders' Equity Trends
- Shareholders’ equity fluctuated considerably during the period. It stood at US$16,828 million in 2005, then decreased sharply to US$11,920 million by 2008. After that, the equity value exhibited variability and a declining trend until it reached a minimum of US$5,259 million in 2016. Subsequently, shareholders’ equity recovered steadily, increasing to US$15,312 million by the end of 2022, surpassing the initial value at the start of the period.
- Debt to Equity Ratio Analysis
- The debt to equity ratio started relatively low at 0.3 in 2005, indicating a moderate level of leverage. This ratio remained below 0.4 until 2011, reflecting controlled use of debt in financing. However, from 2012 onward, the ratio rose sharply, reaching a peak of 2.17 in 2017, which indicates a significant increase in leverage and reliance on debt financing during this period. Subsequently, leverage declined consistently to 0.84 in 2022, suggesting a strategic deleveraging or improved equity position in recent years.
- Summary and Insights
- The analysis reveals that the company increased its long-term debt substantially between 2012 and 2017, which caused a marked rise in the debt to equity ratio, highlighting a period of heightened financial leverage. Correspondingly, shareholders’ equity was at lower levels during this period but began recovering markedly after 2016. The combination of reduced leverage and increasing equity after 2017 indicates a shift towards stronger balance sheet management and potentially improved financial stability by 2022.
Comparison to Competitors
Northrop Grumman Corp., debt to equity, long-term trends, comparison to competitors
| Northrop Grumman Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 0.84 | — | 2.33 | 0.51 | 0.89 | 1.17 | 1.68 | 0.44 |
| Dec 31, 2021 | 0.99 | — | 2.29 | 0.52 | 0.87 | 1.06 | 1.07 | 0.43 |
| Dec 31, 2020 | 1.42 | — | 2.42 | 0.54 | 2.11 | 1.28 | 2.02 | 0.44 |
| Dec 31, 2019 | 1.57 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 1.76 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 2.17 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 1.34 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 1.18 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 0.82 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 0.56 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 0.41 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 0.38 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | 0.36 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | 0.34 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | 0.33 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 0.23 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 0.24 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 0.30 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Northrop Grumman Corp., debt to equity, long-term trends, comparison to sector (capital goods)
| Northrop Grumman Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 0.84 | 1.33 |
| Dec 31, 2021 | 0.99 | 1.26 |
| Dec 31, 2020 | 1.42 | 1.75 |
| Dec 31, 2019 | 1.57 | 2.08 |
| Dec 31, 2018 | 1.76 | 2.03 |
| Dec 31, 2017 | 2.17 | 1.74 |
| Dec 31, 2016 | 1.34 | 1.60 |
| Dec 31, 2015 | 1.18 | 1.64 |
| Dec 31, 2014 | 0.82 | 2.06 |
| Dec 31, 2013 | 0.56 | 2.00 |
| Dec 31, 2012 | 0.41 | 2.56 |
| Dec 31, 2011 | 0.38 | 3.04 |
| Dec 31, 2010 | 0.36 | 3.10 |
| Dec 31, 2009 | 0.34 | 3.46 |
| Dec 31, 2008 | 0.33 | 4.19 |
| Dec 31, 2007 | 0.23 | 3.21 |
| Dec 31, 2006 | 0.24 | 3.02 |
| Dec 31, 2005 | 0.30 | 2.53 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Northrop Grumman Corp., debt to equity, long-term trends, comparison to industry (industrials)
| Northrop Grumman Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 0.84 | 1.42 |
| Dec 31, 2021 | 0.99 | 1.37 |
| Dec 31, 2020 | 1.42 | 1.82 |
| Dec 31, 2019 | 1.57 | 1.82 |
| Dec 31, 2018 | 1.76 | 1.85 |
| Dec 31, 2017 | 2.17 | 1.65 |
| Dec 31, 2016 | 1.34 | 1.54 |
| Dec 31, 2015 | 1.18 | 1.51 |
| Dec 31, 2014 | 0.82 | 1.89 |
| Dec 31, 2013 | 0.56 | 1.79 |
| Dec 31, 2012 | 0.41 | 2.29 |
| Dec 31, 2011 | 0.38 | 2.60 |
| Dec 31, 2010 | 0.36 | 2.68 |
| Dec 31, 2009 | 0.34 | 3.01 |
| Dec 31, 2008 | 0.33 | 3.54 |
| Dec 31, 2007 | 0.23 | 2.73 |
| Dec 31, 2006 | 0.24 | 2.49 |
| Dec 31, 2005 | 0.30 | 2.42 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).