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.

Return on Equity (ROE)
since 2005

Microsoft Excel

Calculation

Northrop Grumman Corp., ROE, long-term trends, calculation

Microsoft Excel

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 financial data reveals several notable trends over the period analyzed. Net earnings exhibited significant volatility, with a pronounced loss recorded in 2008, reflecting an outlier in an otherwise positive earnings trajectory. Following this downturn, net earnings recovered and generally increased, reaching peak levels in 2021 before moderating somewhat in 2022. This pattern indicates resilience and overall growth in profitability despite short-term challenges.

Shareholders’ equity displayed a downward trend starting in 2007, hitting a low point around 2015 and 2016. From this period onward, equity levels gradually improved, showing recovery and steady growth through to the end of the period. The initial decline in equity may signal challenges faced during the financial crisis and its aftermath, while the subsequent growth points to strengthening financial stability and capital retention.

The return on equity (ROE) ratio provides insight into the company’s efficiency in generating profits from shareholders’ investments. ROE decreased substantially into negative territory in 2008, aligned with the net loss incurred that year. Afterward, ROE rose sharply, exceeding 40% in certain years and peaking at over 54% in 2021. This indicates enhanced profitability and improved utilization of equity capital. Although the ROE declined somewhat in 2022, it remained robust, suggesting sustained operational effectiveness.

Summary of Key Patterns
• Net earnings fluctuated with a significant loss in 2008 but demonstrated overall growth post-crisis, peaking in 2021.
• Shareholders’ equity declined from 2007 to about 2015-2016, then showed a steady recovery through 2022.
• ROE mirrored net earnings trends, falling sharply in 2008 but increasing markedly thereafter, indicating improved profitability and equity usage.
• The 2021 figures stand out as a high point across profitability and ROE metrics, while 2022 saw a reduction but maintained a strong performance level.

Comparison to Competitors

Northrop Grumman Corp., ROE, long-term trends, comparison to competitors

Microsoft Excel

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)


Comparison to Industry (Industrials)