Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Solvency Ratios
Quarterly Data

Beginner level

Solvency Ratios (Summary)

Northrop Grumman Corp., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Debt Ratios
Debt to equity 1.65 1.78 1.57 1.43 1.56 1.65 1.76 1.58 1.84 1.99 2.17 1.09 1.20 1.27 1.34 1.11 1.12 1.14 1.18 1.15 1.06 0.97
Debt to equity (including operating lease liability) 1.79 1.92 1.72 1.56 1.68 1.77 1.76 1.58 1.84 1.99 2.17 1.09 1.20 1.27 1.34 1.11 1.12 1.14 1.18 1.15 1.06 0.97
Debt to capital 0.62 0.64 0.61 0.59 0.61 0.62 0.64 0.61 0.65 0.67 0.68 0.52 0.54 0.56 0.57 0.53 0.53 0.53 0.54 0.53 0.51 0.49
Debt to capital (including operating lease liability) 0.64 0.66 0.63 0.61 0.63 0.64 0.64 0.61 0.65 0.67 0.68 0.52 0.54 0.56 0.57 0.53 0.53 0.53 0.54 0.53 0.51 0.49
Debt to assets 0.37 0.37 0.34 0.34 0.36 0.36 0.38 0.38 0.40 0.44 0.44 0.27 0.27 0.28 0.28 0.27 0.27 0.27 0.27 0.27 0.27 0.26
Debt to assets (including operating lease liability) 0.40 0.40 0.37 0.37 0.39 0.39 0.38 0.38 0.40 0.44 0.44 0.27 0.27 0.28 0.28 0.27 0.27 0.27 0.27 0.27 0.27 0.26
Financial leverage 4.48 4.77 4.66 4.17 4.30 4.55 4.60 4.17 4.54 4.53 4.95 4.08 4.36 4.57 4.87 4.18 4.24 4.26 4.43 4.21 3.98 3.74
Coverage Ratios
Interest coverage 6.15 5.98 5.83 7.52 7.96 7.78 7.66 8.24 7.94 8.65 9.47 11.34 11.25 11.07 10.71 10.35 10.19 10.18 10.27

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Northrop Grumman Corp.’s debt to equity ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.
Debt to equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Northrop Grumman Corp.’s debt to equity ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Northrop Grumman Corp.’s debt to capital ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.
Debt to capital (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Northrop Grumman Corp.’s debt to capital ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Northrop Grumman Corp.’s debt to assets ratio deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Northrop Grumman Corp.’s debt to assets ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Northrop Grumman Corp.’s financial leverage ratio increased from Q4 2019 to Q1 2020 but then decreased significantly from Q1 2020 to Q2 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Northrop Grumman Corp.’s interest coverage ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Debt to Equity

Northrop Grumman Corp., debt to equity calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
 
Shareholders’ equity 9,712  9,062  8,819  9,731  9,214  8,739  8,187  9,103  8,227  7,680  7,048  6,493  5,919  5,558  5,259  5,767  5,681  5,621  5,522  5,697  6,171  6,748 
Solvency Ratio
Debt to equity1 1.65 1.78 1.57 1.43 1.56 1.65 1.76 1.58 1.84 1.99 2.17 1.09 1.20 1.27 1.34 1.11 1.12 1.14 1.18 1.15 1.06 0.97
Benchmarks
Debt to Equity, Competitors2
Boeing Co. 117.95 40.85 10.19 31.32 9.92 113.67 12.18 5.01 18.83 2.46 1.57 1.34 1.44 1.14
General Dynamics Corp. 1.05 1.36 0.88 1.01 1.08 1.11 1.06 1.03 1.19 0.55 0.35 0.42 0.36 0.37 0.35 0.34 0.31 0.32 0.32 0.32 0.30 0.30
Lockheed Martin Corp. 3.38 3.68 4.05 3.48 4.75 5.65 10.12 15.62 34.20 6.80 11.29 9.63 9.45 6.16 4.94 4.81 4.93 2.99 2.82 2.39
Raytheon Technologies Corp. 0.49 1.18 1.04 1.10 1.11 1.14 1.18 1.24 0.90 0.90 0.93 0.91 0.94 0.89 0.87 0.78 0.77 0.81 0.75 0.74 0.74 0.77

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).

1 Q2 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 16,062 ÷ 9,712 = 1.65

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Northrop Grumman Corp.’s debt to equity ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.

Debt to Equity (including Operating Lease Liability)

Northrop Grumman Corp., debt to equity (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
Non-current operating lease liabilities 1,333  1,280  1,308  1,304  1,081  1,098  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 17,395  17,369  15,187  15,175  15,464  15,484  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
 
Shareholders’ equity 9,712  9,062  8,819  9,731  9,214  8,739  8,187  9,103  8,227  7,680  7,048  6,493  5,919  5,558  5,259  5,767  5,681  5,621  5,522  5,697  6,171  6,748 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.79 1.92 1.72 1.56 1.68 1.77 1.76 1.58 1.84 1.99 2.17 1.09 1.20 1.27 1.34 1.11 1.12 1.14 1.18 1.15 1.06 0.97
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Raytheon Technologies Corp. 0.51 1.23 1.10 1.15 1.17 1.19 1.18 1.24 0.90 0.90 0.93 0.91 0.94 0.89 0.87 0.78 0.77 0.81 0.75 0.74 0.74 0.77

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).

1 Q2 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 17,395 ÷ 9,712 = 1.79

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Northrop Grumman Corp.’s debt to equity ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.

Debt to Capital

Northrop Grumman Corp., debt to capital calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
Shareholders’ equity 9,712  9,062  8,819  9,731  9,214  8,739  8,187  9,103  8,227  7,680  7,048  6,493  5,919  5,558  5,259  5,767  5,681  5,621  5,522  5,697  6,171  6,748 
Total capital 25,774  25,151  22,698  23,602  23,597  23,125  22,587  23,509  23,358  22,940  22,314  13,583  13,000  12,618  12,329  12,157  12,071  12,010  12,048  12,224  12,698  13,276 
Solvency Ratio
Debt to capital1 0.62 0.64 0.61 0.59 0.61 0.62 0.64 0.61 0.65 0.67 0.68 0.52 0.54 0.56 0.57 0.53 0.53 0.53 0.54 0.53 0.51 0.49
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.23 1.33 1.46 1.20 1.38 0.99 0.98 1.12 1.13 0.91 0.97 0.91 1.23 0.99 0.92 0.83 0.95 0.71 0.61 0.57 0.59 0.53
General Dynamics Corp. 0.51 0.58 0.47 0.50 0.52 0.53 0.51 0.51 0.54 0.35 0.26 0.30 0.27 0.27 0.26 0.26 0.24 0.24 0.24 0.24 0.23 0.23
Lockheed Martin Corp. 0.77 0.79 0.80 0.78 0.83 0.85 0.91 0.94 0.97 1.01 1.05 0.87 0.92 0.91 0.90 0.86 0.83 0.83 0.83 0.75 0.74 0.70
Raytheon Technologies Corp. 0.33 0.54 0.51 0.52 0.53 0.53 0.54 0.55 0.47 0.47 0.48 0.48 0.48 0.47 0.46 0.44 0.44 0.45 0.43 0.43 0.42 0.43

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).

1 Q2 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,062 ÷ 25,774 = 0.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Northrop Grumman Corp.’s debt to capital ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.

Debt to Capital (including Operating Lease Liability)

Northrop Grumman Corp., debt to capital (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
Non-current operating lease liabilities 1,333  1,280  1,308  1,304  1,081  1,098  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 17,395  17,369  15,187  15,175  15,464  15,484  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
Shareholders’ equity 9,712  9,062  8,819  9,731  9,214  8,739  8,187  9,103  8,227  7,680  7,048  6,493  5,919  5,558  5,259  5,767  5,681  5,621  5,522  5,697  6,171  6,748 
Total capital (including operating lease liability) 27,107  26,431  24,006  24,906  24,678  24,223  22,587  23,509  23,358  22,940  22,314  13,583  13,000  12,618  12,329  12,157  12,071  12,010  12,048  12,224  12,698  13,276 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.64 0.66 0.63 0.61 0.63 0.64 0.64 0.61 0.65 0.67 0.68 0.52 0.54 0.56 0.57 0.53 0.53 0.53 0.54 0.53 0.51 0.49
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Raytheon Technologies Corp. 0.34 0.55 0.52 0.54 0.54 0.54 0.54 0.55 0.47 0.47 0.48 0.48 0.48 0.47 0.46 0.44 0.44 0.45 0.43 0.43 0.42 0.43

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).

1 Q2 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 17,395 ÷ 27,107 = 0.64

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Northrop Grumman Corp.’s debt to capital ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 not reaching Q4 2019 level.

Debt to Assets

Northrop Grumman Corp., debt to assets calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
 
Total assets 43,475  43,203  41,089  40,553  39,584  39,751  37,653  37,943  37,378  34,795  34,917  26,513  25,813  25,413  25,614  24,100  24,081  23,933  24,454  23,966  24,552  25,266 
Solvency Ratio
Debt to assets1 0.37 0.37 0.34 0.34 0.36 0.36 0.38 0.38 0.40 0.44 0.44 0.27 0.27 0.28 0.28 0.27 0.27 0.27 0.27 0.27 0.27 0.26
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.38 0.27 0.20 0.19 0.15 0.12 0.12 0.10 0.11 0.11 0.12 0.12 0.12 0.12 0.11 0.12 0.12 0.11 0.11 0.09 0.09 0.09
General Dynamics Corp. 0.29 0.34 0.24 0.28 0.29 0.29 0.27 0.28 0.30 0.17 0.11 0.14 0.12 0.12 0.12 0.12 0.11 0.11 0.11 0.10 0.10 0.10
Lockheed Martin Corp. 0.26 0.26 0.27 0.28 0.28 0.29 0.31 0.32 0.32 0.30 0.31 0.29 0.29 0.29 0.30 0.29 0.29 0.30 0.31 0.21 0.21 0.21
Raytheon Technologies Corp. 0.20 0.33 0.31 0.32 0.33 0.33 0.34 0.35 0.28 0.28 0.28 0.28 0.28 0.27 0.27 0.25 0.25 0.26 0.23 0.25 0.24 0.24

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).

1 Q2 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 16,062 ÷ 43,475 = 0.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Northrop Grumman Corp.’s debt to assets ratio deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Debt to Assets (including Operating Lease Liability)

Northrop Grumman Corp., debt to assets (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,803  1,790  1,109  45  545  523  517  517  744  868  867  863  862  —  12  110  110  110  110 
Long-term debt, net of current portion 14,259  14,299  12,770  13,826  13,838  13,863  13,883  13,889  14,387  14,392  14,399  6,227  6,219  7,060  7,058  6,387  6,387  6,387  6,416  6,417  6,417  6,418 
Total debt 16,062  16,089  13,879  13,871  14,383  14,386  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
Non-current operating lease liabilities 1,333  1,280  1,308  1,304  1,081  1,098  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 17,395  17,369  15,187  15,175  15,464  15,484  14,400  14,406  15,131  15,260  15,266  7,090  7,081  7,060  7,070  6,390  6,390  6,389  6,526  6,527  6,527  6,528 
 
Total assets 43,475  43,203  41,089  40,553  39,584  39,751  37,653  37,943  37,378  34,795  34,917  26,513  25,813  25,413  25,614  24,100  24,081  23,933  24,454  23,966  24,552  25,266 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.40 0.40 0.37 0.37 0.39 0.39 0.38 0.38 0.40 0.44 0.44 0.27 0.27 0.28 0.28 0.27 0.27 0.27 0.27 0.27 0.27 0.26
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Raytheon Technologies Corp. 0.21 0.35 0.33 0.34 0.34 0.34 0.34 0.35 0.28 0.28 0.28 0.28 0.28 0.27 0.27 0.25 0.25 0.26 0.23 0.25 0.24 0.24

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).

1 Q2 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 17,395 ÷ 43,475 = 0.40

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Northrop Grumman Corp.’s debt to assets ratio (including operating lease liability) deteriorated from Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Financial Leverage

Northrop Grumman Corp., financial leverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Total assets 43,475  43,203  41,089  40,553  39,584  39,751  37,653  37,943  37,378  34,795  34,917  26,513  25,813  25,413  25,614  24,100  24,081  23,933  24,454  23,966  24,552  25,266 
Shareholders’ equity 9,712  9,062  8,819  9,731  9,214  8,739  8,187  9,103  8,227  7,680  7,048  6,493  5,919  5,558  5,259  5,767  5,681  5,621  5,522  5,697  6,171  6,748 
Solvency Ratio
Financial leverage1 4.48 4.77 4.66 4.17 4.30 4.55 4.60 4.17 4.54 4.53 4.95 4.08 4.36 4.57 4.87 4.18 4.24 4.26 4.43 4.21 3.98 3.74
Benchmarks
Financial Leverage, Competitors2
Boeing Co. 961.67 346.19 92.92 260.09 83.80 943.93 110.16 42.58 153.18 22.64 14.90 14.69 15.66 12.37
General Dynamics Corp. 3.62 4.07 3.60 3.61 3.73 3.88 3.87 3.68 3.93 3.16 3.06 3.02 3.09 3.14 2.99 2.89 2.89 3.00 2.98 3.07 2.98 2.98
Lockheed Martin Corp. 13.22 14.29 15.20 12.66 16.79 19.34 32.19 48.24 108.47 23.33 38.51 32.93 31.64 20.98 16.82 15.79 15.86 14.08 13.36 11.29
Raytheon Technologies Corp. 2.40 3.54 3.34 3.44 3.41 3.46 3.49 3.58 3.24 3.24 3.27 3.22 3.33 3.28 3.25 3.09 3.08 3.12 3.20 3.02 3.05 3.19

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).

1 Q2 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 43,475 ÷ 9,712 = 4.48

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Northrop Grumman Corp.’s financial leverage ratio increased from Q4 2019 to Q1 2020 but then decreased significantly from Q1 2020 to Q2 2020.

Interest Coverage

Northrop Grumman Corp., interest coverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 1,005  868  (409) 933  861  863  356  1,244  789  840  178  645  552  640  525  602  517  556  459  516  531  484 
Add: Income tax expense 198  185  (160) 122  167  171  47  120  187  159  506  140  255  133  223  167  213  120  162  213  205  220 
Add: Interest expense 154  125  130  123  137  138  142  133  144  143  136  73  76  75  77  74  74  76  75  75  75  76 
Earnings before interest and tax (EBIT) 1,357  1,178  (439) 1,178  1,165  1,172  545  1,497  1,120  1,142  820  858  883  848  825  843  804  752  696  804  811  780 
Solvency Ratio
Interest coverage1 6.15 5.98 5.83 7.52 7.96 7.78 7.66 8.24 7.94 8.65 9.47 11.34 11.25 11.07 10.71 10.35 10.19 10.18 10.27
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -3.86 -6.13 -2.19 7.42 10.37 23.33 25.39 26.65 29.22 30.13 28.90 27.52 26.68 19.08 19.19 16.26 18.00 25.21 27.01
Lockheed Martin Corp. 13.35 12.63 12.09 11.33 10.80 10.39 9.74 10.01 9.74 9.65 9.09 8.46 8.72 8.48 8.37 8.56 9.02 10.23 12.34

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).

1 Q2 2020 Calculation
Interest coverage = (EBITQ2 2020 + EBITQ1 2020 + EBITQ4 2019 + EBITQ3 2019) ÷ (Interest expenseQ2 2020 + Interest expenseQ1 2020 + Interest expenseQ4 2019 + Interest expenseQ3 2019)
= (1,357 + 1,178 + -439 + 1,178) ÷ (154 + 125 + 130 + 123) = 6.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Northrop Grumman Corp.’s interest coverage ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.