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
An analysis of Return on Assets (ROA) from 2005 to 2022 reveals a long-term upward trajectory characterized by specific periods of volatility and a significant peak in the final years of the period.
- Earnings Volatility and Impact on ROA
- A sharp decline in ROA is observed in 2008, reaching -4.18%, which correlates directly with a net loss of 1,262 million US$. Following this event, a consistent recovery phase occurred between 2009 and 2016, during which ROA trended upward from 5.57% to a peak of 8.59%.
- Asset Base Expansion and Efficiency
- A notable increase in total assets began in 2017, rising from approximately 25.6 billion US$ in 2016 to 43.7 billion US$ by 2022. During the initial years of this expansion (2017–2019), ROA experienced fluctuations, dipping as low as 5.47% in 2019, suggesting a period where asset growth temporarily outpaced earnings growth.
- Recent Performance Acceleration
- A substantial surge in asset productivity is evident from 2020 to 2022. ROA reached a period maximum of 16.45% in 2021, driven by a significant spike in net earnings to 7,005 million US$. While the ROA moderated to 11.19% in 2022, the figure remains significantly higher than the historical averages recorded between 2005 and 2019.
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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).