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Northrop Grumman Financial Strength

: 5 (As of Jun. 2022)
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Northrop Grumman has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Northrop Grumman's Interest Coverage for the quarter that ended in Jun. 2022 was 7.28. Northrop Grumman's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.41. As of today, Northrop Grumman's Altman Z-Score is 3.51.


Competitive Comparison

For the Aerospace & Defense subindustry, Northrop Grumman's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Northrop Grumman's Financial Strength falls into.



Northrop Grumman Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

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

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

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

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Northrop Grumman's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14 + 14488) / 35204
=0.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Northrop Grumman has a Z-score of 3.51, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.51 is strong.

* 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.


Northrop Grumman  (NYSE:NOC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Northrop Grumman has the Financial Strength Rank of 5.


Northrop Grumman Financial Strength Related Terms

Thank you for viewing the detailed overview of Northrop Grumman's Financial Strength 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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