Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Northrop Grumman Corp. (NYSE:NOC)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Northrop Grumman Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jun 30, 2020 24.68% = 5.51% × 4.48
Mar 31, 2020 24.86% = 5.21% × 4.77
Dec 31, 2019 25.49% = 5.47% × 4.66
Sep 30, 2019 30.96% = 7.43% × 4.17
Jun 30, 2019 36.08% = 8.40% × 4.30
Mar 31, 2019 37.21% = 8.18% × 4.55
Dec 31, 2018 39.44% = 8.58% × 4.60
Sep 30, 2018 33.52% = 8.04% × 4.17
Jun 30, 2018 29.80% = 6.56% × 4.54
Mar 31, 2018 28.84% = 6.37% × 4.53
Dec 31, 2017 28.59% = 5.77% × 4.95
Sep 30, 2017 36.38% = 8.91% × 4.08
Jun 30, 2017 39.18% = 8.98% × 4.36
Mar 31, 2017 41.09% = 8.99% × 4.57
Dec 31, 2016 41.83% = 8.59% × 4.87
Sep 30, 2016 37.00% = 8.85% × 4.18
Jun 30, 2016 36.05% = 8.50% × 4.24
Mar 31, 2016 36.68% = 8.62% × 4.26
Dec 31, 2015 36.04% = 8.14% × 4.43
Sep 30, 2015 — = — × 4.21
Jun 30, 2015 — = — × 3.98
Mar 31, 2015 — = — × 3.74

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Northrop Grumman Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 24.68% = 6.91% × 0.80 × 4.48
Mar 31, 2020 24.86% = 6.57% × 0.79 × 4.77
Dec 31, 2019 25.49% = 6.64% × 0.82 × 4.66
Sep 30, 2019 30.96% = 9.05% × 0.82 × 4.17
Jun 30, 2019 36.08% = 10.11% × 0.83 × 4.30
Mar 31, 2019 37.21% = 10.31% × 0.79 × 4.55
Dec 31, 2018 39.44% = 10.73% × 0.80 × 4.60
Sep 30, 2018 33.52% = 10.68% × 0.75 × 4.17
Jun 30, 2018 29.80% = 9.08% × 0.72 × 4.54
Mar 31, 2018 28.84% = 8.43% × 0.76 × 4.53
Dec 31, 2017 28.59% = 7.81% × 0.74 × 4.95
Sep 30, 2017 36.38% = 9.24% × 0.96 × 4.08
Jun 30, 2017 39.18% = 9.20% × 0.98 × 4.36
Mar 31, 2017 41.09% = 9.20% × 0.98 × 4.57
Dec 31, 2016 41.83% = 8.98% × 0.96 × 4.87
Sep 30, 2016 37.00% = 8.96% × 0.99 × 4.18
Jun 30, 2016 36.05% = 8.67% × 0.98 × 4.24
Mar 31, 2016 36.68% = 8.77% × 0.98 × 4.26
Dec 31, 2015 36.04% = 8.46% × 0.96 × 4.43
Sep 30, 2015 — = — × — × 4.21
Jun 30, 2015 — = — × — × 3.98
Mar 31, 2015 — = — × — × 3.74

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Northrop Grumman Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 24.68% = 0.87 × 0.84 × 9.44% × 0.80 × 4.48
Mar 31, 2020 24.86% = 0.88 × 0.83 × 8.99% × 0.79 × 4.77
Dec 31, 2019 25.49% = 0.88 × 0.83 × 9.09% × 0.82 × 4.66
Sep 30, 2019 30.96% = 0.86 × 0.87 × 12.20% × 0.82 × 4.17
Jun 30, 2019 36.08% = 0.87 × 0.87 × 13.32% × 0.83 × 4.30
Mar 31, 2019 37.21% = 0.86 × 0.87 × 13.74% × 0.79 × 4.55
Dec 31, 2018 39.44% = 0.86 × 0.87 × 14.30% × 0.80 × 4.60
Sep 30, 2018 33.52% = 0.76 × 0.88 × 16.03% × 0.75 × 4.17
Jun 30, 2018 29.80% = 0.71 × 0.87 × 14.58% × 0.72 × 4.54
Mar 31, 2018 28.84% = 0.68 × 0.88 × 14.10% × 0.76 × 4.53
Dec 31, 2017 28.59% = 0.66 × 0.89 × 13.21% × 0.74 × 4.95
Sep 30, 2017 36.38% = 0.76 × 0.91 × 13.35% × 0.96 × 4.08
Jun 30, 2017 39.18% = 0.75 × 0.91 × 13.49% × 0.98 × 4.36
Mar 31, 2017 41.09% = 0.76 × 0.91 × 13.38% × 0.98 × 4.57
Dec 31, 2016 41.83% = 0.75 × 0.91 × 13.15% × 0.96 × 4.87
Sep 30, 2016 37.00% = 0.76 × 0.90 × 13.00% × 0.99 × 4.18
Jun 30, 2016 36.05% = 0.74 × 0.90 × 12.93% × 0.98 × 4.24
Mar 31, 2016 36.68% = 0.75 × 0.90 × 13.02% × 0.98 × 4.26
Dec 31, 2015 36.04% = 0.71 × 0.90 × 13.14% × 0.96 × 4.43
Sep 30, 2015 — = — × — × — × — × 4.21
Jun 30, 2015 — = — × — × — × — × 3.98
Mar 31, 2015 — = — × — × — × — × 3.74

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Northrop Grumman Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2020 5.51% = 6.91% × 0.80
Mar 31, 2020 5.21% = 6.57% × 0.79
Dec 31, 2019 5.47% = 6.64% × 0.82
Sep 30, 2019 7.43% = 9.05% × 0.82
Jun 30, 2019 8.40% = 10.11% × 0.83
Mar 31, 2019 8.18% = 10.31% × 0.79
Dec 31, 2018 8.58% = 10.73% × 0.80
Sep 30, 2018 8.04% = 10.68% × 0.75
Jun 30, 2018 6.56% = 9.08% × 0.72
Mar 31, 2018 6.37% = 8.43% × 0.76
Dec 31, 2017 5.77% = 7.81% × 0.74
Sep 30, 2017 8.91% = 9.24% × 0.96
Jun 30, 2017 8.98% = 9.20% × 0.98
Mar 31, 2017 8.99% = 9.20% × 0.98
Dec 31, 2016 8.59% = 8.98% × 0.96
Sep 30, 2016 8.85% = 8.96% × 0.99
Jun 30, 2016 8.50% = 8.67% × 0.98
Mar 31, 2016 8.62% = 8.77% × 0.98
Dec 31, 2015 8.14% = 8.46% × 0.96
Sep 30, 2015 — = — × —
Jun 30, 2015 — = — × —
Mar 31, 2015 — = — × —

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2020 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Northrop Grumman Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2020 5.51% = 0.87 × 0.84 × 9.44% × 0.80
Mar 31, 2020 5.21% = 0.88 × 0.83 × 8.99% × 0.79
Dec 31, 2019 5.47% = 0.88 × 0.83 × 9.09% × 0.82
Sep 30, 2019 7.43% = 0.86 × 0.87 × 12.20% × 0.82
Jun 30, 2019 8.40% = 0.87 × 0.87 × 13.32% × 0.83
Mar 31, 2019 8.18% = 0.86 × 0.87 × 13.74% × 0.79
Dec 31, 2018 8.58% = 0.86 × 0.87 × 14.30% × 0.80
Sep 30, 2018 8.04% = 0.76 × 0.88 × 16.03% × 0.75
Jun 30, 2018 6.56% = 0.71 × 0.87 × 14.58% × 0.72
Mar 31, 2018 6.37% = 0.68 × 0.88 × 14.10% × 0.76
Dec 31, 2017 5.77% = 0.66 × 0.89 × 13.21% × 0.74
Sep 30, 2017 8.91% = 0.76 × 0.91 × 13.35% × 0.96
Jun 30, 2017 8.98% = 0.75 × 0.91 × 13.49% × 0.98
Mar 31, 2017 8.99% = 0.76 × 0.91 × 13.38% × 0.98
Dec 31, 2016 8.59% = 0.75 × 0.91 × 13.15% × 0.96
Sep 30, 2016 8.85% = 0.76 × 0.90 × 13.00% × 0.99
Jun 30, 2016 8.50% = 0.74 × 0.90 × 12.93% × 0.98
Mar 31, 2016 8.62% = 0.75 × 0.90 × 13.02% × 0.98
Dec 31, 2015 8.14% = 0.71 × 0.90 × 13.14% × 0.96
Sep 30, 2015 — = — × — × — × —
Jun 30, 2015 — = — × — × — × —
Mar 31, 2015 — = — × — × — × —

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Northrop Grumman Corp., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2020 6.91% = 0.87 × 0.84 × 9.44%
Mar 31, 2020 6.57% = 0.88 × 0.83 × 8.99%
Dec 31, 2019 6.64% = 0.88 × 0.83 × 9.09%
Sep 30, 2019 9.05% = 0.86 × 0.87 × 12.20%
Jun 30, 2019 10.11% = 0.87 × 0.87 × 13.32%
Mar 31, 2019 10.31% = 0.86 × 0.87 × 13.74%
Dec 31, 2018 10.73% = 0.86 × 0.87 × 14.30%
Sep 30, 2018 10.68% = 0.76 × 0.88 × 16.03%
Jun 30, 2018 9.08% = 0.71 × 0.87 × 14.58%
Mar 31, 2018 8.43% = 0.68 × 0.88 × 14.10%
Dec 31, 2017 7.81% = 0.66 × 0.89 × 13.21%
Sep 30, 2017 9.24% = 0.76 × 0.91 × 13.35%
Jun 30, 2017 9.20% = 0.75 × 0.91 × 13.49%
Mar 31, 2017 9.20% = 0.76 × 0.91 × 13.38%
Dec 31, 2016 8.98% = 0.75 × 0.91 × 13.15%
Sep 30, 2016 8.96% = 0.76 × 0.90 × 13.00%
Jun 30, 2016 8.67% = 0.74 × 0.90 × 12.93%
Mar 31, 2016 8.77% = 0.75 × 0.90 × 13.02%
Dec 31, 2015 8.46% = 0.71 × 0.90 × 13.14%
Sep 30, 2015 — = — × — × —
Jun 30, 2015 — = — × — × —
Mar 31, 2015 — = — × — × —

Based on: 10-Q (filing date: 2020-07-30), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-01-30), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-24), 10-K (filing date: 2019-01-31), 10-Q (filing date: 2018-10-24), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-01-29), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-26), 10-K (filing date: 2017-01-30), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-01), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-29).

The primary reason for the increase in net profit margin ratio over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.