Northrop Grumman (MIL:1NOC) ROCE % : 15.19% (As of Sep. 2024)

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What is Northrop Grumman ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Northrop Grumman's annualized ROCE % for the quarter that ended in Sep. 2024 was 15.19%.

Northrop Grumman ROCE % Historical Data

The historical data trend for Northrop Grumman's ROCE % 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.

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Northrop Grumman ROCE % Chart

Northrop Grumman Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.19

12.43

29.01

20.09

8.54

Northrop Grumman Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															14.78	-7.19	14.77	15.05	15.19

Northrop Grumman ROCE % Calculation

Northrop Grumman's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2651.047	/	( ( (41304.72 - 10938.128)	+	(42680.848 - 10950.814) )	/ 2 )
	=	2651.047	/	( (30366.592	+	31730.034)	/ 2 )
	=	2651.047	/	31048.313
	=	8.54 %

Northrop Grumman's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	4861.796	/	( ( (44285.43 - 11991.532)	+	(43508.389 - 11804.001) )	/ 2 )
	=	4861.796	/	( ( 32293.898	+	31704.388 )	/ 2 )
	=	4861.796	/	31999.143
	=	15.19 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Northrop Grumman (MIL:1NOC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Northrop Grumman ROCE % Related Terms

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Northrop Grumman Business Description

Industry

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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, 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 maintains and upgrades 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. Space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.

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