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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.

Debt to Equity
since 2005

Microsoft Excel

Calculation

Northrop Grumman Corp., debt to equity, long-term trends, calculation

Microsoft Excel
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

The capital structure of Northrop Grumman Corp. from 2005 to 2022 is characterized by three distinct phases: a period of low leverage, a period of rapid escalation in debt and equity contraction, and a subsequent phase of financial recovery and deleveraging.

Debt Trends
Long-term debt remained relatively stable and conservative between 2005 and 2012, fluctuating primarily between 3.9 billion and 5.1 billion US dollars. A significant shift occurred starting in 2013, with debt levels rising to 5.9 billion US dollars and continuing an upward trajectory to peak at 15.266 billion US dollars in 2017. Following this peak, debt levels remained elevated but showed a gradual downward trend, ending at 12.877 billion US dollars by 2022.
Shareholders' Equity Trends
Equity levels were strongest in the early period, peaking at 17.687 billion US dollars in 2007. A period of contraction followed, with equity reaching a minimum of 5.259 billion US dollars in 2016. Since 2017, there has been a consistent and significant recovery in shareholders' equity, which grew steadily to reach 15.312 billion US dollars by the end of 2022.
Debt to Equity Ratio Analysis
The debt to equity ratio remained below 0.42 from 2005 through 2012, indicating a low-risk leverage profile. Between 2013 and 2017, the ratio experienced a sharp increase, rising from 0.56 to a peak of 2.17. This spike was driven by the simultaneous increase in long-term borrowing and the reduction of shareholders' equity. From 2018 onward, the ratio declined consistently, falling to 0.84 by 2022, signaling a return toward a more balanced capital structure.

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Comparison to Competitors

Northrop Grumman Corp., debt to equity, long-term trends, comparison to competitors

Microsoft Excel
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)

Microsoft Excel
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)

Microsoft Excel
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).