Operating Profit Margin
since 2005
Calculation
Northrop Grumman Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 9.84% | = | 100 | × | 3,601) | ÷ | 36,602) |
| Dec 31, 2021 | 15.84% | = | 100 | × | 5,651) | ÷ | 35,667) |
| Dec 31, 2020 | 11.05% | = | 100 | × | 4,065) | ÷ | 36,799) |
| Dec 31, 2019 | 11.73% | = | 100 | × | 3,969) | ÷ | 33,841) |
| Dec 31, 2018 | 12.56% | = | 100 | × | 3,780) | ÷ | 30,095) |
| Dec 31, 2017 | 12.79% | = | 100 | × | 3,299) | ÷ | 25,803) |
| Dec 31, 2016 | 13.03% | = | 100 | × | 3,193) | ÷ | 24,508) |
| Dec 31, 2015 | 13.07% | = | 100 | × | 3,076) | ÷ | 23,526) |
| Dec 31, 2014 | 13.33% | = | 100 | × | 3,196) | ÷ | 23,979) |
| Dec 31, 2013 | 12.66% | = | 100 | × | 3,123) | ÷ | 24,661) |
| Dec 31, 2012 | 12.41% | = | 100 | × | 3,130) | ÷ | 25,218) |
| Dec 31, 2011 | 12.40% | = | 100 | × | 3,276) | ÷ | 26,412) |
| Dec 31, 2010 | 8.83% | = | 100 | × | 3,070) | ÷ | 34,757) |
| Dec 31, 2009 | 7.36% | = | 100 | × | 2,483) | ÷ | 33,755) |
| Dec 31, 2008 | -0.33% | = | 100 | × | (111) | ÷ | 33,887) |
| Dec 31, 2007 | 9.39% | = | 100 | × | 3,006) | ÷ | 32,018) |
| Dec 31, 2006 | 8.14% | = | 100 | × | 2,454) | ÷ | 30,148) |
| Dec 31, 2005 | 7.09% | = | 100 | × | 2,178) | ÷ | 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 operating profit margin exhibited significant volatility over the analyzed 18-year period, characterized by an initial growth phase, a severe outlier in 2008, a period of sustained stability, and recent sharp fluctuations.
- Early Trend and the 2008 Anomaly
- From 2005 to 2007, a consistent upward trend in profitability was observed, with the operating profit margin rising from 7.09% to 9.39%. This progress was sharply interrupted in 2008, when the company experienced an operating loss of 111 million US dollars, resulting in a margin of -0.33%. This occurred despite sales increasing to 33.89 billion US dollars, indicating a substantial increase in operating expenses or a significant one-time charge during that fiscal year.
- Recovery and Period of Stability
- A recovery began in 2009, with the margin returning to 7.36% and climbing steadily to 12.40% by 2011. Between 2011 and 2017, the operating profit margin entered a phase of high stability, maintaining a range between 12.41% and 13.33%. During this interval, operating income remained consistent near the 3.1 to 3.3 billion US dollar level, reflecting a period of disciplined cost control and predictable operational performance.
- Recent Margin Fluctuations (2018-2022)
- Starting in 2018, a gradual compression of the operating profit margin was noted, declining from 12.56% to 11.05% by 2020. This trend was followed by a significant spike in 2021, where the margin reached a period high of 15.84%, driven by an increase in operating income to 5.65 billion US dollars. However, this peak was short-lived, as the margin contracted sharply to 9.84% in 2022, marking a return to profitability levels similar to those seen in the mid-2000s.
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Comparison to Competitors
Northrop Grumman Corp., operating profit margin, long-term trends, comparison to competitors
| Northrop Grumman Corp. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 9.84% | -5.33% | 13.97% | 12.65% | 8.07% |
| Dec 31, 2021 | 15.84% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 11.05% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 11.73% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 12.56% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 12.79% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 13.03% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 13.07% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 13.33% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 12.66% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 12.41% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 12.40% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 8.83% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 7.36% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | -0.33% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 9.39% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 8.14% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 7.09% | 5.13% | 11.13% | 8.02% | 12.26% |
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).