Stock Analysis on Net
Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

Analysis of Profitability Ratios
Quarterly Data

Beginner level


Profitability Ratios (Summary)

Northrop Grumman Corp., profitability 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
Return on Sales
Gross profit margin 21.27% 21.26% 21.45% 20.56% 21.60% 21.96% 22.57% 22.81% 22.35% 22.85% 23.07% 23.54% 23.80% 23.74% 23.57% 23.59% 23.64% 23.90% 23.98%
Operating profit margin 11.57% 11.58% 11.73% 11.35% 12.15% 12.26% 12.56% 12.61% 12.13% 12.62% 12.79% 13.15% 13.27% 13.24% 13.03% 12.82% 12.78% 12.90% 13.07%
Net profit margin 6.91% 6.57% 6.64% 9.05% 10.11% 10.31% 10.73% 10.68% 9.08% 8.43% 7.81% 9.24% 9.20% 9.20% 8.98% 8.96% 8.67% 8.77% 8.46%
Return on Investment
Return on equity (ROE) 24.68% 24.86% 25.49% 30.96% 36.08% 37.21% 39.44% 33.52% 29.80% 28.84% 28.59% 36.38% 39.18% 41.09% 41.83% 37.00% 36.05% 36.68% 36.04%
Return on assets (ROA) 5.51% 5.21% 5.47% 7.43% 8.40% 8.18% 8.58% 8.04% 6.56% 6.37% 5.77% 8.91% 8.98% 8.99% 8.59% 8.85% 8.50% 8.62% 8.14%

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).

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 Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Northrop Grumman Corp.’s operating profit margin ratio deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Northrop Grumman Corp.’s net profit margin ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Northrop Grumman Corp.’s ROE deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
ROA A profitability ratio calculated as net income divided by total assets. Northrop Grumman Corp.’s ROA deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Gross Profit Margin

Northrop Grumman Corp., gross profit margin 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)
Gross profit 1,826  1,722  2,106  1,727  1,730  1,696  1,687  1,989  1,556  1,559  1,413  1,511  1,521  1,509  1,477  1,488  1,417  1,395  1,316  1,457  1,454  1,415 
Sales 8,884  8,620  8,721  8,475  8,456  8,189  8,156  8,085  7,119  6,735  6,634  6,527  6,375  6,267  6,397  6,155  6,000  5,956  5,694  5,979  5,896  5,957 
Profitability Ratio
Gross profit margin1 21.27% 21.26% 21.45% 20.56% 21.60% 21.96% 22.57% 22.81% 22.35% 22.85% 23.07% 23.54% 23.80% 23.74% 23.57% 23.59% 23.64% 23.90% 23.98%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 1.83% 0.47% 5.83% 13.24% 13.64% 19.22% 19.42% 18.67% 19.05% 18.97% 18.55% 17.75% 17.47% 15.02% 14.57% 13.59% 13.58% 14.40% 14.59%
General Dynamics Corp. 17.25% 17.82% 17.94% 17.73% 17.78% 17.93% 18.55% 18.94% 19.44% 20.01% 19.98% 20.30% 20.13% 20.12% 19.93% 19.89% 19.62% 19.46% 19.48%
Lockheed Martin Corp. 13.49% 13.53% 13.99% 14.03% 13.99% 13.82% 13.53% 12.76% 12.19% 11.72% 10.87% 10.64% 10.84% 10.68% 10.71% 10.81% 10.56% 10.85% 11.27%
Raytheon Technologies Corp. 23.49% 26.17% 25.93% 25.76% 25.02% 24.72% 24.84% 25.21% 25.86% 26.29% 26.55% 26.99% 27.30% 27.41% 27.57% 27.24% 27.47% 27.71% 27.93%

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
Gross profit margin = 100 × (Gross profitQ2 2020 + Gross profitQ1 2020 + Gross profitQ4 2019 + Gross profitQ3 2019) ÷ (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019)
= 100 × (1,826 + 1,722 + 2,106 + 1,727) ÷ (8,884 + 8,620 + 8,721 + 8,475) = 21.27%

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 Q4 2019 to Q1 2020 but then slightly improved from Q1 2020 to Q2 2020.

Operating Profit Margin

Northrop Grumman Corp., operating profit margin 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)
Operating income 994  934  1,136  951  946  936  943  1,172  817  848  767  845  855  832  831  826  797  739  689  794  813  780 
Sales 8,884  8,620  8,721  8,475  8,456  8,189  8,156  8,085  7,119  6,735  6,634  6,527  6,375  6,267  6,397  6,155  6,000  5,956  5,694  5,979  5,896  5,957 
Profitability Ratio
Operating profit margin1 11.57% 11.58% 11.73% 11.35% 12.15% 12.26% 12.56% 12.61% 12.13% 12.62% 12.79% 13.15% 13.27% 13.24% 13.03% 12.82% 12.78% 12.90% 13.07%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -7.90% -8.05% -2.58% 5.06% 5.83% 11.39% 11.85% 11.05% 11.62% 11.62% 11.01% 10.33% 9.93% 6.53% 6.17% 5.07% 5.28% 7.47% 7.74%
General Dynamics Corp. 11.22% 11.78% 11.81% 11.67% 11.66% 11.77% 12.31% 12.51% 12.84% 13.36% 13.49% 13.77% 13.76% 13.81% 13.74% 13.67% 13.44% 13.38% 13.28%
Lockheed Martin Corp. 13.45% 13.72% 14.29% 14.13% 14.10% 13.98% 13.64% 13.47% 13.01% 12.58% 11.60% 11.05% 11.52% 11.56% 11.74% 11.64% 11.16% 11.29% 11.78%
Raytheon Technologies Corp. 3.34% 11.35% 11.64% 11.95% 11.55% 12.45% 12.86% 13.40% 14.23% 13.60% 14.49% 14.21% 14.54% 14.72% 14.28% 12.17% 12.39% 12.57% 13.00%

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
Operating profit margin = 100 × (Operating incomeQ2 2020 + Operating incomeQ1 2020 + Operating incomeQ4 2019 + Operating incomeQ3 2019) ÷ (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019)
= 100 × (994 + 934 + 1,136 + 951) ÷ (8,884 + 8,620 + 8,721 + 8,475) = 11.57%

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 Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Net Profit Margin

Northrop Grumman Corp., net profit margin 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 
Sales 8,884  8,620  8,721  8,475  8,456  8,189  8,156  8,085  7,119  6,735  6,634  6,527  6,375  6,267  6,397  6,155  6,000  5,956  5,694  5,979  5,896  5,957 
Profitability Ratio
Net profit margin1 6.91% 6.57% 6.64% 9.05% 10.11% 10.31% 10.73% 10.68% 9.08% 8.43% 7.81% 9.24% 9.20% 9.20% 8.98% 8.96% 8.67% 8.77% 8.46%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -4.27% -4.84% -0.83% 4.37% 5.42% 10.07% 10.34% 10.36% 9.92% 9.63% 8.78% 7.33% 7.84% 5.52% 5.18% 4.52% 3.84% 5.24% 5.39%
General Dynamics Corp. 8.47% 8.87% 8.85% 8.66% 8.65% 8.68% 9.24% 9.01% 9.16% 9.49% 9.40% 9.94% 9.63% 9.66% 9.42% 9.45% 9.53% 9.44% 9.42%
Lockheed Martin Corp. 10.25% 10.21% 10.42% 10.26% 10.18% 9.91% 9.39% 5.78% 5.00% 4.64% 3.92% 7.31% 10.37% 10.78% 11.22% 11.31% 8.02% 7.81% 7.81%
Raytheon Technologies Corp. -2.28% 5.34% 7.19% 6.73% 7.13% 7.64% 7.92% 7.76% 8.09% 7.28% 7.61% 8.79% 9.15% 9.11% 8.83% 12.87% 12.79% 13.12% 13.56%

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
Net profit margin = 100 × (Net earningsQ2 2020 + Net earningsQ1 2020 + Net earningsQ4 2019 + Net earningsQ3 2019) ÷ (SalesQ2 2020 + SalesQ1 2020 + SalesQ4 2019 + SalesQ3 2019)
= 100 × (1,005 + 868 + -409 + 933) ÷ (8,884 + 8,620 + 8,721 + 8,475) = 6.91%

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 deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Return on Equity (ROE)

Northrop Grumman Corp., ROE 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 
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 
Profitability Ratio
ROE1 24.68% 24.86% 25.49% 30.96% 36.08% 37.21% 39.44% 33.52% 29.80% 28.84% 28.59% 36.38% 39.18% 41.09% 41.83% 37.00% 36.05% 36.68% 36.04%
Benchmarks
ROE, Competitors2
Boeing Co. 8,105.60% 3,085.55% 754.75% 2,309.01% 616.57% 5,396.84% 599.14% 205.36% 635.04% 125.13% 81.70%
General Dynamics Corp. 23.50% 26.10% 25.66% 24.96% 25.71% 26.90% 28.51% 24.08% 24.89% 25.04% 25.47% 26.57% 27.32% 28.36% 26.92% 25.82% 27.03% 28.03% 27.61%
Lockheed Martin Corp. 171.93% 181.17% 199.23% 153.74% 205.26% 226.90% 361.98% 334.15% 629.09% 173.12% 402.21% 348.42% 350.89% 225.87% 124.02% 114.10% 116.40%
Raytheon Technologies Corp. -2.42% 10.42% 13.25% 12.55% 12.69% 13.38% 13.70% 15.51% 16.17% 14.62% 15.37% 17.30% 18.70% 19.05% 18.33% 25.08% 24.76% 25.98% 27.81%

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
ROE = 100 × (Net earningsQ2 2020 + Net earningsQ1 2020 + Net earningsQ4 2019 + Net earningsQ3 2019) ÷ Shareholders’ equity
= 100 × (1,005 + 868 + -409 + 933) ÷ 9,712 = 24.68%

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 deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Return on Assets (ROA)

Northrop Grumman Corp., ROA 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 
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 
Profitability Ratio
ROA1 5.51% 5.21% 5.47% 7.43% 8.40% 8.18% 8.58% 8.04% 6.56% 6.37% 5.77% 8.91% 8.98% 8.99% 8.59% 8.85% 8.50% 8.62% 8.14%
Benchmarks
ROA, Competitors2
Boeing Co. -1.75% -2.39% -0.48% 2.86% 3.96% 8.43% 8.91% 8.87% 8.53% 8.12% 8.88% 7.36% 7.91% 5.72% 5.44% 4.82% 4.15% 5.53% 5.48%
General Dynamics Corp. 6.50% 6.41% 7.13% 6.91% 6.89% 6.93% 7.37% 6.54% 6.33% 7.92% 8.31% 8.80% 8.85% 9.04% 8.99% 8.94% 9.36% 9.36% 9.27%
Lockheed Martin Corp. 13.00% 12.68% 13.11% 12.15% 12.23% 11.73% 11.24% 6.93% 5.80% 5.14% 4.30% 7.42% 10.45% 10.58% 11.09% 10.77% 7.37% 7.23% 7.34%
Raytheon Technologies Corp. -1.01% 2.94% 3.96% 3.65% 3.72% 3.87% 3.93% 4.33% 4.99% 4.52% 4.70% 5.36% 5.61% 5.82% 5.64% 8.13% 8.05% 8.32% 8.70%

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
ROA = 100 × (Net earningsQ2 2020 + Net earningsQ1 2020 + Net earningsQ4 2019 + Net earningsQ3 2019) ÷ Total assets
= 100 × (1,005 + 868 + -409 + 933) ÷ 43,475 = 5.51%

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 deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.