Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Northrop Grumman Corp., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating income (loss)1 ÷ Sales1
Dec 31, 2022 = 100 × ÷
Dec 31, 2021 = 100 × ÷
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Dec 31, 2018 = 100 × ÷
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Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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

Operating Income Analysis
The operating income exhibited significant fluctuation over the analyzed period. Beginning at $2,178 million in 2005, it generally increased, peaking at $3,299 million in 2017 and reaching a high of $5,651 million in 2021. Notably, there was a sharp decline in 2008, resulting in a loss of $111 million. Subsequently, operating income recovered steadily until 2021, when it reached its highest point. However, in 2022, operating income decreased substantially to $3,601 million, indicating volatility in recent years.
Sales Trends
Sales showed a somewhat volatile trend throughout the period. Sales started at $30,721 million in 2005 and generally fluctuated around that level until 2010. Then, a marked decline occurred between 2010 and 2012, reaching a low of $24,661 million in 2013. From 2013 onwards, sales recovered strongly, peaking at $36,799 million in 2020. Despite this peak, sales slightly declined in 2021 and then experienced a modest increase again in 2022, ending at $36,602 million. Overall, sales demonstrate cyclicality with periods of both contraction and expansion.
Operating Profit Margin Dynamics
The operating profit margin showed considerable variation over the period. Starting at 7.09% in 2005, the margin improved significantly, reaching a high of 13.33% in 2014. A notable dip to -0.33% occurred in 2008, coinciding with the operating loss recorded that year. From 2010 onward, margins remained relatively stable, fluctuating mostly between 11% and 13%, with a peak of 15.84% in 2021. The margin declined to 9.84% in 2022, indicating a reduction in profitability despite stable sales.
Overall Insights
The company showed resilience and recovery following the 2008 financial downturn, with improvements in operating income and profit margin in the years after. Sales volatility affected profitability but showed a strong recovery trend post-2013. The peak profitability in 2021, in terms of both operating income and margin, was followed by a marked decrease in 2022, suggesting potential challenges in maintaining peak performance levels. The relationship between sales and operating income indicates operational efficiency improvements in some years, particularly when margins increased despite flat or slightly declining sales. The data indicates a mature business facing cyclical demand and operational challenges requiring careful management to sustain profitability.

Comparison to Competitors

Northrop Grumman Corp., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Northrop Grumman Corp. Boeing Co. Caterpillar Inc. Lockheed Martin Corp. RTX Corp.
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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).