Return on Assets (ROA)
since 2005
Calculation
Northrop Grumman Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 11.19% | = | 100 | × | 4,896) | ÷ | 43,755) |
| Dec 31, 2021 | 16.45% | = | 100 | × | 7,005) | ÷ | 42,579) |
| Dec 31, 2020 | 7.17% | = | 100 | × | 3,189) | ÷ | 44,469) |
| Dec 31, 2019 | 5.47% | = | 100 | × | 2,248) | ÷ | 41,089) |
| Dec 31, 2018 | 8.58% | = | 100 | × | 3,229) | ÷ | 37,653) |
| Dec 31, 2017 | 5.77% | = | 100 | × | 2,015) | ÷ | 34,917) |
| Dec 31, 2016 | 8.59% | = | 100 | × | 2,200) | ÷ | 25,614) |
| Dec 31, 2015 | 8.14% | = | 100 | × | 1,990) | ÷ | 24,454) |
| Dec 31, 2014 | 7.79% | = | 100 | × | 2,069) | ÷ | 26,572) |
| Dec 31, 2013 | 7.40% | = | 100 | × | 1,952) | ÷ | 26,381) |
| Dec 31, 2012 | 7.45% | = | 100 | × | 1,978) | ÷ | 26,543) |
| Dec 31, 2011 | 8.33% | = | 100 | × | 2,118) | ÷ | 25,411) |
| Dec 31, 2010 | 6.53% | = | 100 | × | 2,053) | ÷ | 31,421) |
| Dec 31, 2009 | 5.57% | = | 100 | × | 1,686) | ÷ | 30,252) |
| Dec 31, 2008 | -4.18% | = | 100 | × | (1,262) | ÷ | 30,197) |
| Dec 31, 2007 | 5.36% | = | 100 | × | 1,790) | ÷ | 33,373) |
| Dec 31, 2006 | 4.82% | = | 100 | × | 1,542) | ÷ | 32,009) |
| Dec 31, 2005 | 4.09% | = | 100 | × | 1,400) | ÷ | 34,214) |
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 analysis of the financial data over the period from 2005 to 2022 reveals several notable trends and patterns concerning net earnings, total assets, and return on assets (ROA).
- Net earnings (loss)
- The net earnings exhibit significant fluctuations throughout the period. Initially, there is a growth trend from 1,400 million USD in 2005 to 1,790 million USD in 2007. This is interrupted by a sharp loss in 2008, where net earnings fall to -1,262 million USD. However, the company quickly recovers in the following years, with net earnings returning to positive territory by 2009 and generally showing an upward trajectory, peaking at 3,229 million USD in 2018. Subsequently, net earnings experience variability, reaching a high of 7,005 million USD in 2021 before declining to 4,896 million USD in 2022. Overall, the earnings pattern reflects periods of volatility likely influenced by economic or company-specific events, alongside strong growth phases.
- Total assets
- Total assets demonstrate some volatility but generally show an increasing trend over the entire period. Starting at 34,214 million USD in 2005, total assets decline to a low of 24,454 million USD in 2015. From this point, the asset base expands significantly, reaching a peak of 44,469 million USD in 2020, before slightly decreasing towards 43,755 million USD in 2022. This expansion suggests strategic asset accumulation or acquisitions during the latter part of the period, potentially supporting the company's growth in earnings.
- Return on Assets (ROA)
- ROA follows a pattern consistent with net earnings trends, exhibiting negative performance in 2008 with -4.18%. From 2009 onwards, ROA steadily improves, generally remaining above 5%, and reaching a notable peak of 16.45% in 2021. This peak corresponds with the highest recorded net earnings, indicating enhanced profitability and efficient asset utilization during this year. The decline to 11.19% in 2022 still reflects solid profitability relative to asset size, despite the decrease from the prior peak.
In summary, the company shows resilience and capacity for recovery following a significant downturn in 2008. There is evidence of strong growth in earnings and asset base over the longer term, especially notable in the period from 2015 onwards. The substantial improvement in ROA during the most recent years indicates enhanced operational efficiency and profitability notwithstanding some earnings volatility.
Comparison to Competitors
Northrop Grumman Corp., ROA, 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 | 11.19% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Dec 31, 2021 | 16.45% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 7.17% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 5.47% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 8.58% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 5.77% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 8.59% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 8.14% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 7.79% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 7.40% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 7.45% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 8.33% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | 6.53% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | 5.57% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | -4.18% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 5.36% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 4.82% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 4.09% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Northrop Grumman Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 11.19% | 2.84% |
| Dec 31, 2021 | 16.45% | 1.86% |
| Dec 31, 2020 | 7.17% | 0.80% |
| Dec 31, 2019 | 5.47% | 2.72% |
| Dec 31, 2018 | 8.58% | 1.74% |
| Dec 31, 2017 | 5.77% | 1.83% |
| Dec 31, 2016 | 8.59% | 4.09% |
| Dec 31, 2015 | 8.14% | 2.17% |
| Dec 31, 2014 | 7.79% | 3.87% |
| Dec 31, 2013 | 7.40% | 3.45% |
| Dec 31, 2012 | 7.45% | 3.30% |
| Dec 31, 2011 | 8.33% | 3.30% |
| Dec 31, 2010 | 6.53% | 2.70% |
| Dec 31, 2009 | 5.57% | 2.16% |
| Dec 31, 2008 | -4.18% | 3.33% |
| Dec 31, 2007 | 5.36% | 3.89% |
| Dec 31, 2006 | 4.82% | 3.91% |
| Dec 31, 2005 | 4.09% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| Northrop Grumman Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 11.19% | 3.31% |
| Dec 31, 2021 | 16.45% | 3.40% |
| Dec 31, 2020 | 7.17% | 0.04% |
| Dec 31, 2019 | 5.47% | 2.56% |
| Dec 31, 2018 | 8.58% | 3.16% |
| Dec 31, 2017 | 5.77% | 3.59% |
| Dec 31, 2016 | 8.59% | 4.55% |
| Dec 31, 2015 | 8.14% | 3.52% |
| Dec 31, 2014 | 7.79% | 4.31% |
| Dec 31, 2013 | 7.40% | 3.91% |
| Dec 31, 2012 | 7.45% | 3.38% |
| Dec 31, 2011 | 8.33% | 3.69% |
| Dec 31, 2010 | 6.53% | 3.03% |
| Dec 31, 2009 | 5.57% | 2.24% |
| Dec 31, 2008 | -4.18% | 3.10% |
| Dec 31, 2007 | 5.36% | 3.87% |
| Dec 31, 2006 | 4.82% | 6.41% |
| Dec 31, 2005 | 4.09% | 1.42% |
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).