Net Profit Margin
since 2005
Calculation
Northrop Grumman Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings (loss)1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.38% | = | 100 | × | 4,896) | ÷ | 36,602) |
| Dec 31, 2021 | 19.64% | = | 100 | × | 7,005) | ÷ | 35,667) |
| Dec 31, 2020 | 8.67% | = | 100 | × | 3,189) | ÷ | 36,799) |
| Dec 31, 2019 | 6.64% | = | 100 | × | 2,248) | ÷ | 33,841) |
| Dec 31, 2018 | 10.73% | = | 100 | × | 3,229) | ÷ | 30,095) |
| Dec 31, 2017 | 7.81% | = | 100 | × | 2,015) | ÷ | 25,803) |
| Dec 31, 2016 | 8.98% | = | 100 | × | 2,200) | ÷ | 24,508) |
| Dec 31, 2015 | 8.46% | = | 100 | × | 1,990) | ÷ | 23,526) |
| Dec 31, 2014 | 8.63% | = | 100 | × | 2,069) | ÷ | 23,979) |
| Dec 31, 2013 | 7.92% | = | 100 | × | 1,952) | ÷ | 24,661) |
| Dec 31, 2012 | 7.84% | = | 100 | × | 1,978) | ÷ | 25,218) |
| Dec 31, 2011 | 8.02% | = | 100 | × | 2,118) | ÷ | 26,412) |
| Dec 31, 2010 | 5.91% | = | 100 | × | 2,053) | ÷ | 34,757) |
| Dec 31, 2009 | 4.99% | = | 100 | × | 1,686) | ÷ | 33,755) |
| Dec 31, 2008 | -3.72% | = | 100 | × | (1,262) | ÷ | 33,887) |
| Dec 31, 2007 | 5.59% | = | 100 | × | 1,790) | ÷ | 32,018) |
| Dec 31, 2006 | 5.11% | = | 100 | × | 1,542) | ÷ | 30,148) |
| Dec 31, 2005 | 4.56% | = | 100 | × | 1,400) | ÷ | 30,721) |
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 net profit margin exhibits a general long-term upward trajectory from 2005 to 2022, characterized by periods of steady growth, a significant singular contraction, and a substantial peak in the latter part of the period.
- Initial Growth and Volatility (2005–2008)
- Between 2005 and 2007, the net profit margin increased incrementally from 4.56% to 5.59%. This stability was interrupted in 2008, where the margin collapsed to -3.72%. This decline was driven by a net loss of 1,262 million US dollars, occurring despite a contemporaneous increase in sales to 33,887 million US dollars, indicating a significant non-operational or extraordinary expense during that fiscal year.
- Recovery and Structural Margin Improvement (2009–2016)
- Following the 2008 deficit, the net profit margin recovered to 4.99% in 2009 and entered a period of sustained expansion, reaching 8.98% by 2016. Notably, between 2011 and 2014, sales experienced a contraction, dropping from 26,412 million US dollars to 23,979 million US dollars. Despite the decline in top-line revenue, the net profit margin continued to rise from 8.02% to 8.63%, suggesting successful cost management or a strategic shift toward higher-margin contracts.
- Recent Performance and Exceptional Gains (2017–2022)
- The period from 2017 to 2022 is marked by heightened volatility and a significant increase in profitability. After a dip to 6.64% in 2019, the net profit margin climbed to 8.67% in 2020 before surging to a peak of 19.64% in 2021. This peak corresponds with a sharp increase in net earnings to 7,005 million US dollars. Although the margin moderated to 13.38% in 2022, the profitability remains substantially higher than the historical averages observed between 2005 and 2020.
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Comparison to Competitors
Northrop Grumman Corp., net profit margin, 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 | 13.38% | -7.41% | 11.85% | 11.86% | 0.31% | 14.00% | 8.69% | 7.75% |
| Dec 31, 2021 | 19.64% | -6.75% | 13.47% | 10.92% | -9.17% | 16.11% | 9.42% | 6.00% |
| Dec 31, 2020 | 8.67% | -20.42% | 7.68% | 7.90% | 7.81% | 14.64% | 10.45% | -6.22% |
| Dec 31, 2019 | 6.64% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 10.73% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 7.81% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 8.98% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | 8.46% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 8.63% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | 7.92% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | 7.84% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | 8.02% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | 5.91% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | 4.99% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | -3.72% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | 5.59% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 5.11% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 4.56% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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., net profit margin, long-term trends, comparison to sector (capital goods)
| Northrop Grumman Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 13.38% | 5.27% |
| Dec 31, 2021 | 19.64% | 3.71% |
| Dec 31, 2020 | 8.67% | 1.85% |
| Dec 31, 2019 | 6.64% | 5.03% |
| Dec 31, 2018 | 10.73% | 2.99% |
| Dec 31, 2017 | 7.81% | 3.41% |
| Dec 31, 2016 | 8.98% | 7.61% |
| Dec 31, 2015 | 8.46% | 4.69% |
| Dec 31, 2014 | 8.63% | 9.51% |
| Dec 31, 2013 | 7.92% | 8.78% |
| Dec 31, 2012 | 7.84% | 8.73% |
| Dec 31, 2011 | 8.02% | 9.04% |
| Dec 31, 2010 | 5.91% | 7.93% |
| Dec 31, 2009 | 4.99% | 6.61% |
| Dec 31, 2008 | -3.72% | 9.45% |
| Dec 31, 2007 | 5.59% | 11.53% |
| Dec 31, 2006 | 5.11% | 10.82% |
| Dec 31, 2005 | 4.56% | 9.72% |
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., net profit margin, long-term trends, comparison to industry (industrials)
| Northrop Grumman Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 13.38% | 5.04% |
| Dec 31, 2021 | 19.64% | 5.85% |
| Dec 31, 2020 | 8.67% | 0.09% |
| Dec 31, 2019 | 6.64% | 4.11% |
| Dec 31, 2018 | 10.73% | 4.75% |
| Dec 31, 2017 | 7.81% | 5.79% |
| Dec 31, 2016 | 8.98% | 7.43% |
| Dec 31, 2015 | 8.46% | 6.48% |
| Dec 31, 2014 | 8.63% | 8.76% |
| Dec 31, 2013 | 7.92% | 8.23% |
| Dec 31, 2012 | 7.84% | 7.39% |
| Dec 31, 2011 | 8.02% | 8.26% |
| Dec 31, 2010 | 5.91% | 7.48% |
| Dec 31, 2009 | 4.99% | 5.76% |
| Dec 31, 2008 | -3.72% | 7.27% |
| Dec 31, 2007 | 5.59% | 9.56% |
| Dec 31, 2006 | 5.11% | 14.87% |
| Dec 31, 2005 | 4.56% | 3.55% |
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).