Market Cap : 75.12 B | Enterprise Value : 89.59 B | PE Ratio : 13.57 | PB Ratio : 5.50 |
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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Northrop Grumman's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 52.52%.
The historical rank and industry rank for Northrop Grumman's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 13 years, Northrop Grumman's highest ROC (Joel Greenblatt) % was 117.47%. The lowest was 41.58%. And the median was 103.35%.
NOC's ROC (Joel Greenblatt) % is ranked better thanNorthrop Grumman's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.70% per year.
The historical data trend for Northrop Grumman's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Northrop Grumman's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
ROC (Joel Greenblatt) % | = | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) |
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Working Capital | (Q: Mar. 2022 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (1713 | + | 838 | + | 713) | - | (2050 | + | 2876 | + | 3917) |
= | -5579 |
Working Capital | (Q: Jun. 2022 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (2387 | + | 909 | + | 961) | - | (2098 | + | 2734 | + | 4130) |
= | -4705 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Northrop Grumman for the quarter that ended in Jun. 2022 can be restated as:
ROC (Joel Greenblatt) % | (Q: Jun. 2022 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Mar. 2022 | Q: Jun. 2022 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 5124 | / | ( ( (9719 + max(-5579, 0)) | + | (9794 + max(-4705, 0)) ) | / | 2 ) |
= | 5124 | / | ( ( 9719 | + | 9794 ) | / | 2 ) |
= | 5124 | / | 9756.5 | ||||
= | 52.52 % |
Note: The EBIT data used here is four times the quarterly (Jun. 2022) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.
Thank you for viewing the detailed overview of Northrop Grumman's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Bromberg Matthew Fox | officer: CVP, Global Operations | 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Wilson Thomas L Jr | officer: CVP and Pres. Space Systems | 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Robinson Graham | director | 1000 STANLEY DRIVE NEW BRITAIN CT 06053 |
Jones Thomas H | officer: CVP & Pres Aeronautics Systems | 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Abney David P | director | 55 GLENLAKE PARWAY, NE ATLANTA GA 30328 |
Brown Marianne Catherine | director | 4094 TIMUQUANA ROAD JACKSONVILLE FL 33210-8571 |
Keffer David F | officer: CVP & Chief Financial Officer | 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Petryszyn Mary D | officer: CVP, Pres, Defense Systems | 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Bush Wesley G | director, officer: Chairman | 333 MAPLE AVENUE EAST #3080 VIENNA VA 22180 |
Ryan Lucy C | officer: Corp VP, Communications | 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Addison Ann M | officer: Corporate Vice President | 11951 FREEDOM DRIVE RESTON VA 20190 |
Larson Blake E | officer: Vice President, other: Corp VP & Pres, NGIS | 5050 LINCOLN DRIVE EDINA MN 55436 |
Kalan Lesley A | officer: Corp VP, Government Relations | 805 VASSAR ROAD ALEXANDRIA VA 22314 |
Purvis Shawn N | officer: CVP, President, Enterprise Svc | 9672 CRECY LANE MANASSAS VA 20110 |
Pamiljans Janis G | officer: Corp VP & President AS Systems | 212 LANSING ISLAND DRIVE INDIAN HARBOUR BEACH FL 32937 |
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