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Northrop Grumman Interest Coverage

: 7.28 (As of Jun. 2022)
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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 Jun. 2022 was $954 Mil. Northrop Grumman's Interest Expense for the three months ended in Jun. 2022 was $-131 Mil. Northrop Grumman's interest coverage for the quarter that ended in Jun. 2022 was 7.28. 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: 6.6   Med: 9.58   Max: 14.76
Current: 6.87


NOC's Interest Coverage is ranked worse than
60.67% of 178 companies
in the Aerospace & Defense industry
Industry Median: 9.68 vs NOC: 6.87

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.

* Premium members only.

Northrop Grumman Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.94 6.73 7.52 6.85 6.60

Northrop Grumman Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.68 7.90 5.58 6.74 7.28

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Northrop Grumman's Interest Expense was $-556 Mil. Its Operating Income was $3,671 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,367 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*3671/-556
=6.60

Northrop Grumman's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Northrop Grumman's Interest Expense was $-131 Mil. Its Operating Income was $954 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,488 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*954/-131
=7.28

* 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 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

Thank you for viewing the detailed overview of Northrop Grumman's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Northrop Grumman Business Description

Northrop Grumman logo
Address
2980 Fairview Park Drive, Falls Church, VA, USA, 22042
Northrop Grumman is a defense contractor that is diversified across short-cycle and long-cycle businesses. The firm's segments include aeronautics, mission systems, defense services, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces various piloted and autonomous flight systems. Mission systems creates a variety of sensors and processors for defense hardware. The defense systems segment is a mix between a long-range missile manufacturer and a defense IT service provider. Finally, the company's space systems segment produces various space structures, sensors, and satellites.
Executives
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

Northrop Grumman Headlines

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