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

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Northrop Grumman Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 21.45% 22.57% 23.07% 23.57% 23.98%
Operating profit margin 11.73% 12.56% 12.79% 13.03% 13.07%
Net profit margin 6.64% 10.73% 7.81% 8.98% 8.46%
Return on Investment
Return on equity (ROE) 25.49% 39.44% 28.59% 41.83% 36.04%
Return on assets (ROA) 5.47% 8.58% 5.77% 8.59% 8.14%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Northrop Grumman Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Northrop Grumman Corp.’s operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Northrop Grumman Corp.’s net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Northrop Grumman Corp.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Northrop Grumman Corp.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Gross Profit Margin

Northrop Grumman Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 7,259  6,791  5,954  5,777  5,642 
Sales 33,841  30,095  25,803  24,508  23,526 
Profitability Ratio
Gross profit margin1 21.45% 22.57% 23.07% 23.57% 23.98%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 5.83% 19.42% 18.55% 14.57% 14.59%
General Dynamics Corp. 17.94% 18.55% 19.98% 19.93% 19.48%
Lockheed Martin Corp. 13.99% 13.53% 10.87% 10.71% 11.27%
Raytheon Technologies Corp. 25.93% 24.84% 26.55% 27.57% 27.93%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 7,259 ÷ 33,841 = 21.45%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Northrop Grumman Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

Northrop Grumman Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating income 3,969  3,780  3,299  3,193  3,076 
Sales 33,841  30,095  25,803  24,508  23,526 
Profitability Ratio
Operating profit margin1 11.73% 12.56% 12.79% 13.03% 13.07%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -2.58% 11.85% 11.01% 6.17% 7.74%
General Dynamics Corp. 11.81% 12.31% 13.49% 13.74% 13.28%
Lockheed Martin Corp. 14.29% 13.64% 11.60% 11.74% 11.78%
Raytheon Technologies Corp. 11.64% 12.86% 14.49% 14.28% 13.00%
Operating Profit Margin, Sector
Aerospace & Defense 8.43% 12.55% 12.39% 10.61% 10.83%
Operating Profit Margin, Industry
Industrials 13.15% 14.05% 13.85% 12.87% 13.62%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 3,969 ÷ 33,841 = 11.73%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Northrop Grumman Corp.’s operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Northrop Grumman Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 2,248  3,229  2,015  2,200  1,990 
Sales 33,841  30,095  25,803  24,508  23,526 
Profitability Ratio
Net profit margin1 6.64% 10.73% 7.81% 8.98% 8.46%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -0.83% 10.34% 8.78% 5.18% 5.39%
General Dynamics Corp. 8.85% 9.24% 9.40% 9.42% 9.42%
Lockheed Martin Corp. 10.42% 9.39% 3.92% 11.22% 7.81%
Raytheon Technologies Corp. 7.19% 7.92% 7.61% 8.83% 13.56%
Net Profit Margin, Sector
Aerospace & Defense 5.88% 9.51% 7.54% 8.01% 8.43%
Net Profit Margin, Industry
Industrials 7.36% 6.75% 8.05% 8.73% 7.03%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 2019 Calculation
Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 2,248 ÷ 33,841 = 6.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Northrop Grumman Corp.’s net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Return on Equity (ROE)

Northrop Grumman Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 2,248  3,229  2,015  2,200  1,990 
Shareholders’ equity 8,819  8,187  7,048  5,259  5,522 
Profitability Ratio
ROE1 25.49% 39.44% 28.59% 41.83% 36.04%
Benchmarks
ROE, Competitors2
Boeing Co. 3,085.55% 2,309.01% 599.14% 81.70%
General Dynamics Corp. 25.66% 28.51% 25.47% 26.92% 27.61%
Lockheed Martin Corp. 199.23% 361.98% 350.89% 116.40%
Raytheon Technologies Corp. 13.25% 13.70% 15.37% 18.33% 27.81%
ROE, Sector
Aerospace & Defense 28.74% 45.51% 41.20% 44.23% 40.23%
ROE, Industry
Industrials 25.43% 23.99% 23.83% 25.16% 17.65%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 2019 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 2,248 ÷ 8,819 = 25.49%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Northrop Grumman Corp.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Return on Assets (ROA)

Northrop Grumman Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net earnings 2,248  3,229  2,015  2,200  1,990 
Total assets 41,089  37,653  34,917  25,614  24,454 
Profitability Ratio
ROA1 5.47% 8.58% 5.77% 8.59% 8.14%
Benchmarks
ROA, Competitors2
Boeing Co. -0.48% 8.91% 8.88% 5.44% 5.48%
General Dynamics Corp. 7.13% 7.37% 8.31% 8.99% 9.27%
Lockheed Martin Corp. 13.11% 11.24% 4.30% 11.09% 7.34%
Raytheon Technologies Corp. 3.96% 3.93% 4.70% 5.64% 8.70%
ROA, Sector
Aerospace & Defense 4.10% 7.21% 6.44% 7.14% 7.42%
ROA, Industry
Industrials 4.67% 4.52% 5.03% 5.46% 4.00%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-30), 10-K (filing date: 2016-02-01).

1 2019 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,248 ÷ 41,089 = 5.47%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Northrop Grumman Corp.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.