Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Northrop Grumman Corp. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Northrop Grumman Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Northrop Grumman Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable throughout the observed period, fluctuating slightly around the 20%-22% range. It showed a minor decline from 22.57% in the first quarter of 2019 to a low near 20.08% in mid-2021, followed by a modest recovery towards 20.96% at the end of 2021. Since then, it has held steady around 20.4% through early 2023, indicating consistent cost control relative to sales over time.
- Operating Profit Margin
- Operating profit margin demonstrated more variability. Between early 2019 and the end of 2020, margins hovered between approximately 11% and 12.5%. A notable improvement occurred during 2021, peaking above 16% in Q3 2021, suggesting enhanced operational efficiency or favorable cost structures. However, from early 2022 onward, the margin dropped significantly, stabilizing just below 10% in 2023. This decline may signal increased operating expenses or competitive pressures impacting operating profitability.
- Net Profit Margin
- Net profit margin followed a somewhat similar pattern to operating margin, but with more pronounced fluctuations. After an initial downward trend from about 10.7% in early 2019 to around 6.6% by early 2020, it rebounded impressively to a peak near 19.6% in Q1 2022. Following this peak, the margin gradually compressed to approximately 12.9% by Q1 2023. The sharp rise and subsequent decline suggest episodic gains possibly influenced by non-operating items or extraordinary factors impacting net income.
- Return on Equity (ROE)
- ROE exhibited a declining trend from its peak at 39.44% in Q1 2019 to just over 23% by the end of 2020, indicating a reduction in profitability relative to shareholder equity during this time. However, it surged significantly in 2021, reaching a high above 54% in Q1 2022. This exceptional increase was followed by a decline to around 31.6% in early 2023, though it remains elevated relative to the initial period. These variations reflect fluctuations in net income and capital efficiency, possibly affected by share repurchases or other equity-related factors.
- Return on Assets (ROA)
- ROA tracked a similar trajectory to ROE but at lower percentage levels, which is consistent given the differing denominators. It decreased from approximately 8.6% in early 2019 to 5.5% by late 2020, then increased markedly to peak around 16.5% in Q1 2022. Thereafter, ROA declined to approximately 10.8% by Q1 2023. This pattern suggests improved asset utilization and profitability during 2021 and early 2022, followed by a moderation in performance.
Return on Sales
Return on Investment
Gross Profit Margin
Northrop Grumman Corp., gross profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Gross profit margin = 100
× (Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022)
÷ (SalesQ1 2023
+ SalesQ4 2022
+ SalesQ3 2022
+ SalesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit values exhibit some seasonal fluctuations across the quarters, with peaks commonly observed toward the end of each year. Between the first quarter of 2018 and the first quarter of 2023, gross profit generally increases, despite some dips in specific quarters such as the last quarter of 2021. The highest gross profit point is noted in the fourth quarter of 2020, reaching 2,090 million US dollars, followed by a somewhat variable pattern thereafter but maintaining a level close to or above the 1,800 million mark in most recent quarters.
Sales figures show an overall upward trend over the analyzed periods. Starting near 6,735 million US dollars in the first quarter of 2018, sales steadily rise to surpass 10,000 million US dollars by the fourth quarter of 2020 and the first quarter of 2023. Notable growth can be observed between 2019 and 2021 where sales consistently remain around the 8,700 to 10,200 million US dollars range. However, there are some quarters where sales slightly retract or plateau, such as in the third quarter of 2021 and first quarter of 2023.
The gross profit margin, calculated from available data starting the third quarter of 2018, remains relatively stable throughout the periods reviewed. Margins hover around the range of 20% to 22.5%, with minor fluctuations. The highest margin noted is approximately 22.57% in the third quarter of 2018, after which the margin slightly decreases and remains close to 20-21% for subsequent quarters. This suggests consistent cost control relative to sales, despite varying gross profit and sales values.
- Summary of Trends
- The company's gross profit and sales both demonstrate a general upward movement over five years, with expected quarterly variations, including seasonal increases and some periods of decline or stabilization.
- Sales growth appears more pronounced and consistent than gross profit growth, suggesting a possible impact on cost of goods sold or pricing strategies that influence gross margin stability.
- The gross profit margin’s stability near 20-21% indicates a steady relationship between sales and costs, without significant margin expansion or compression over the period.
- Periods of peak gross profit coincide with higher sales, notably the end of 2020, while more recent quarters show mixed results with slight decreases in gross profit despite strong sales, pointing to potential cost pressures.
Operating Profit Margin
Northrop Grumman Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (SalesQ1 2023
+ SalesQ4 2022
+ SalesQ3 2022
+ SalesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in operating income, sales, and operating profit margin over the observed periods.
- Operating Income
- Operating income showed a degree of volatility across the quarters. Initially, there was a steady increase from 848 million USD in March 2018 to a peak of 1172 million USD in September 2018. Subsequent quarters saw fluctuations, with values generally ranging between 742 million USD and 1152 million USD until December 2020. Notably, a significant spike occurred in March 2021, with operating income reaching 2822 million USD, suggesting an exceptional event or improved operational performance during this quarter. Following this spike, operating income stabilized to values between 742 million USD and 1044 million USD through December 2021. From March 2022 to March 2023, operating income remained relatively consistent, maintaining levels between 844 million USD and 947 million USD, indicating stable earnings in this period.
- Sales
- Sales figures indicated steady growth over the entire period analyzed. Beginning at 6735 million USD in March 2018, sales increased consistently, reaching a high point of 10212 million USD in December 2020. There was some fluctuation between 8639 million USD and 9157 million USD from March 2021 through June 2022, suggesting a plateau phase following the earlier growth. Sales resumed growth toward the end of the period, culminating at 10033 million USD in December 2022 before slightly retracting to 9301 million USD in March 2023. Overall, sales displayed a positive trend with minor short-term variations.
- Operating Profit Margin
- The operating profit margin showed favorable improvement overall. In the periods where data is available, starting from March 2019, the margin hovered around 12%, with values ranging from approximately 11% to just over 12.5%. A marked increase is observed beginning in March 2021, with margins rising sharply to approximately 16%, sustaining this higher level through December 2021. However, margins declined notably from March 2022 onward, settling near 9.8% by March 2023. This decline in margin despite increasing sales in earlier periods suggests rising costs or changes in the sales mix affecting profitability.
In summary, the data indicates that while sales progressively increased over the years, operating income experienced volatility with a significant peak in early 2021. Profit margins improved substantially around the same period but later declined in 2022 and early 2023. These patterns may reflect external market factors, internal strategic decisions, or operational challenges impacting financial performance. Continuous monitoring of margin trends relative to sales and operating income is advisable for a comprehensive understanding of operational efficiency and profitability.
Net Profit Margin
Northrop Grumman Corp., net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ (SalesQ1 2023
+ SalesQ4 2022
+ SalesQ3 2022
+ SalesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Earnings
- The net earnings exhibit significant volatility over the observed periods. Initial quarters reveal fluctuating profits with a notable dip in December 2019, where net earnings turned negative (-409 million USD). Following this, a recovery phase is apparent, with earnings increasing substantially toward the end of 2021, peaking at 2710 million USD in December 2021. Subsequently, earnings decline again but remain positive, with values above 800 million USD in most recent quarters.
- Sales
- Sales demonstrate an overall upward trend from early 2018 through 2023, albeit with some variability. Starting at 6735 million USD in March 2018, sales generally increase, reaching a peak of 10212 million USD in December 2020. After this peak, sales figures show some fluctuations but maintain levels around 8700 to 10000 million USD, indicating relative stability after the initial growth phase.
- Net Profit Margin
- The net profit margin data begins from the first quarter of 2019. Margins initially range between approximately 6.5% and 10.7%, indicating moderate profitability. From 2020 onwards, there is a consistent improvement in margin percentages, peaking at 19.64% in December 2021. After this peak, net profit margins decline modestly but remain elevated compared to early periods, staying within the 12.89% to 16.33% range, reflecting improved operational efficiency or profitability despite fluctuations in earnings and sales.
- Overall Trends and Insights
- Over the observed timeframe, sales growth is evident with periodic fluctuations. Net earnings are more volatile and show sensitivity to specific quarters, including a significant loss quarter in late 2019. The net profit margin trend implies better profitability management or cost control in recent years, with margins nearly doubling from early 2019 to late 2021. The peak in both net earnings and profit margin in late 2021 suggests an exceptionally favorable performance period, followed by a normalization phase with sustained profitability above earlier years. Sales growth with strong profit margins in the latter periods may indicate strengthening market position or improved operational leverage.
Return on Equity (ROE)
Northrop Grumman Corp., ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
ROE = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ Shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings
- The net earnings exhibit notable volatility throughout the observed periods. Initially, earnings show a general upward trend, increasing from 840 million in March 2018 to a peak of 1244 million in September 2018, followed by a significant drop to 356 million by December 2018. The figures stabilize around the 800-900 million range through 2019, but a sharp negative value of -409 million is recorded in December 2019, indicating a potential loss or significant charge that quarter. Recovery is observed in 2020, with earnings returning to positive values mostly near or above 900 million, except for a dip to 330 million in December. A substantial increase occurs from March 2021 onwards, with peaks of 2195 million and 2710 million in March and December 2021 respectively. However, subsequent quarters see some decline but remain above earlier levels, ending with 842 million in March 2023. This pattern reflects fluctuations with intermittent strong growth phases and some quarters of considerable decreases, suggesting variable profitability.
- Shareholders’ Equity
- Shareholders’ equity shows a consistent upward trajectory over the entire period. Starting at 7680 million in March 2018, it steadily rises with only slight fluctuations, reaching a value of 15136 million in March 2023. Growth is relatively stable, with occasional increments reflecting continuous capital retention or reinvestment. The gradual increase indicates strengthening of the company’s equity base, which potentially supports its operational and financial activities.
- Return on Equity (ROE)
- ROE data is partially unavailable for early periods, but from March 2019 onwards, it demonstrates considerable variation. Values start high around 39.44% in March 2019 and remain relatively strong through 2019 and 2020, fluctuating mostly in the mid-20s to mid-30s percentile range. In 2021, ROE peaks significantly, reaching as high as 54.19% in December 2021, aligning with the spikes in net earnings during the same period, indicating enhanced profitability relative to equity. Post-2021, ROE declines but stabilizes around 30-40%, ending close to 31.6% in March 2023. This trend suggests periods of heightened efficiency in generating earnings from equity, interspersed with normalization phases.
Return on Assets (ROA)
Northrop Grumman Corp., ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
ROA = 100
× (Net earningsQ1 2023
+ Net earningsQ4 2022
+ Net earningsQ3 2022
+ Net earningsQ2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and patterns over the observed period.
- Net Earnings
- The net earnings exhibit considerable volatility across the quarters. Initial quarters show steady earnings, generally ranging below 1,000 million USD, except for a peak at the end of 2017. A significant dip into negative territory occurs in December 2019, marking an anomaly in the earnings trend. Following this, the earnings recover and rise substantially in the subsequent quarters of 2020 and especially in 2021, reaching a peak in the last quarter of 2021 with more than 2,700 million USD. This peak is followed by another decline during 2022, but the earnings remain relatively strong compared to earlier years, fluctuating around 900 to 2,000 million USD.
- Total Assets
- Total assets generally demonstrate a gradual upward trend throughout the timeframe. From approximately 34,800 million USD in early 2018, assets grow steadily, crossing 40,000 million USD by late 2019 and approaching 44,000 million USD by the first quarter of 2023. There is minor but consistent growth with only slight fluctuations, indicating stability in asset accumulation and management.
- Return on Assets (ROA)
- The ROA data starts being available from the first quarter of 2019, showing a decline from 8.58% to around 5.2% at mid-2020. Following this low point, a general upward trend is observed, with ROA increasing steadily to a peak of 16.45% in the last quarter of 2021. Post-peak, ROA declines somewhat but remains robust, consistently above 10%, indicating improved asset profitability and efficiency relative to earlier years.
In summary, the financial results indicate a period marked by earnings fluctuations with a significant recovery and strong performance in 2021, accompanied by steady asset growth and an improving return on assets. The temporary negative earnings episode in late 2019 suggests an unusual event or charge impacting results during that period, but recovery was swift and substantial. The asset base has remained solid with consistent growth, and the ROA indicates enhanced profitability and effective utilization of assets over time.