Northrop Grumman (Northrop Grumman) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Northrop Grumman's Operating Income for the three months ended in Dec. 2023 was $-393 Mil. Northrop Grumman's Interest Expense for the three months ended in Dec. 2023 was $-128 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Northrop Grumman's Interest Coverage or its related term are showing as below:

NOC' s Interest Coverage Range Over the Past 10 Years
Min: 4.66 Med: 7.32 Max: 11.33
Current: 4.66

NOC's Interest Coverage is ranked worse than
64.35% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs NOC: 4.66

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Northrop Grumman Interest Coverage Historical Data

The historical data trend for Northrop Grumman's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Northrop Grumman Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

7.52

6.85

6.60

7.12

4.66

Northrop Grumman Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																7.55	7.34	6.58	7.21	-

Competitive Comparison

For the Aerospace & Defense subindustry, Northrop Grumman's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Northrop Grumman Interest Coverage Distribution

For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Northrop Grumman's Interest Coverage falls into.

Northrop Grumman Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Northrop Grumman's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Northrop Grumman's Interest Expense was $-545 Mil. Its Operating Income was $2,537 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,678 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2537	/	-545
	=	4.66

Northrop Grumman's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Northrop Grumman's Interest Expense was $-128 Mil. Its Operating Income was $-393 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,678 Mil.

Northrop Grumman did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Northrop Grumman (NYSE:NOC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Northrop Grumman Interest Coverage Related Terms

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Northrop Grumman (Northrop Grumman) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Northrop Grumman Corp (NYSE:NOC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NOC:Mexico NTH:Germany NTH:Germany NTH:Germany NOCG34:Brazil NOCO:Austria

Address

2980 Fairview Park Drive, Falls Church, VA, USA, 22042

Website

https://www.northropgrumman.com

Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber. Defense systems makes artillery and missile ammunition and guidance systems, missile defense systems, and conducts maintenance and upgrades on numerous military aircraft. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.

Executives

Mark A Caylor	officer: Corp VP & Pres ESS	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Kathryn G Simpson	officer: Corp VP & General Counsel	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Robert J. Fleming	officer: CVP and Pres. Space Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Roshan S Roeder	officer: CVP & Pres. Defense Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Mary A Winston	director	557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
Kimberly A. Ross	director	C/O AVON PRODUCTS,INC., 1345 AVENUE OF THE AMERICAS`, NEW YORK NY 10105-0196
David T Perry	officer: CVP Chief Global Bus Dev Off	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Lucy C Ryan	officer: Corp VP, Communications	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Michael A Hardesty	officer: Corp VP, Controller & CAO	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Thomas H Jones	officer: CVP & Pres Aeronautics Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Mary D Petryszyn	officer: CVP, Pres, Defense Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Sheila C. Cheston	officer: Corp. VP & General Counsel	C/O NORTHROP GRUMMAN CORPORATION, 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Stephen F. O'bryan	officer: CVP Global Bus Dev Officer	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Arvind Krishna	director	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Wilson Thomas L Jr	officer: CVP and Pres. Space Systems	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042