Explain this page
Arphra AIPlain-English read on Northrop Grumman Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
CMixed
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin19.8%
Operating margin10.2%
Net margin10.0%
ROE25.1%
ROA8.1%
ROIC11.0%
Liquidity & leverage
Current ratio1.09×
Quick ratio0.99×
Debt / equity1.18×
Net debt / EBITDA2.13×
Interest coverage6×
Efficiency & per-share
Asset turnover0.82×
Inventory days14
Days sales out.77
FCF / share$23.00
Book value / share$115.95
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $68.99B | $81.83B | — | — | — | — |
| Enterprise value | — | — | — | $84.83B | $97.16B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 2.07 | 2.32 | — | — | — | — |
| EV / FCF | — | — | — | 32.36 | 29.38 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +6.05% | +5.11% | — | — | — | — |
| Free cash flow yield | — | — | — | +3.80% | +4.04% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +20.38% | +20.42% | +16.67% | +20.38% | +19.81% | +18.77% | +19.20% | +19.09% | +19.12% |
| Operating margin | +15.84% | +9.84% | +6.46% | +10.65% | +10.20% | +8.96% | +9.22% | +9.01% | +8.96% |
| EBITDA margin | +24.49% | +20.99% | +10.76% | +16.67% | +17.17% | +15.10% | +15.13% | +14.51% | +15.23% |
| EBIT margin | +21.01% | +17.33% | +7.36% | +13.33% | +13.66% | +11.45% | +11.41% | +11.75% | +11.34% |
| Pre-tax margin | +25.06% | +15.94% | +5.97% | +12.22% | +12.08% | +10.29% | +10.22% | +10.26% | +9.90% |
| Net margin | +19.64% | +13.38% | +5.23% | +10.17% | +9.97% | +8.33% | +8.27% | +8.47% | +8.52% |
| Cost structure | |||||||||
| Cost of revenue / sales | +79.62% | +79.58% | +83.33% | +79.62% | +80.19% | +79.72% | +81.98% | +81.44% | +79.04% |
| R&D intensity | +3.08% | +3.28% | +3.05% | +2.68% | +2.62% | +2.84% | +2.75% | +2.75% | +2.72% |
| SG&A intensity | +0.64% | +3.10% | +9.94% | +7.05% | +9.61% | +8.61% | +9.10% | +8.67% | +8.99% |
| Effective tax rate | +21.63% | +16.11% | +12.36% | +16.79% | +17.48% | +14.89% | +15.58% | +14.99% | +15.80% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +54.19% | +31.97% | +13.90% | +27.30% | +25.08% | +22.41% | +21.67% | +22.16% | +21.67% |
| Return on assets (ROA) | +16.45% | +11.19% | +4.42% | +8.46% | +8.14% | +7.03% | +6.68% | +6.97% | +7.10% |
| Return on capital (ROC) | +19.37% | +11.21% | +7.75% | +12.32% | +11.75% | +10.78% | +10.84% | +10.52% | +10.21% |
| Return on invested capital (ROIC) | +24.01% | +15.24% | +6.28% | +11.76% | +11.48% | +10.02% | +9.73% | +9.89% | +9.70% |
| Asset turnover | +83.77% | +83.65% | +84.41% | +83.13% | +81.66% | +84.39% | +80.74% | +82.28% | +83.35% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +19.64% | +13.38% | +5.23% | +10.17% | +9.97% | +8.33% | +8.27% | +8.47% | +8.52% |
| Asset turnover (× revenue / assets) | +83.77% | +83.65% | +84.41% | +83.13% | +81.66% | +84.39% | +80.74% | +82.28% | +83.35% |
| Equity multiplier (× assets / equity) | +329.41% | +285.76% | +314.59% | +322.82% | +308.13% | +318.93% | +324.52% | +317.99% | +305.28% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.84 | 0.84 | 0.84 | 0.83 | 0.82 | 0.84 | 0.81 | 0.82 | 0.83 |
| Fixed-asset turnover | 3.74 | 3.45 | 3.43 | 3.33 | 3.27 | — | — | — | — |
| Inventory turnover | 35.02 | 29.78 | 29.52 | 22.45 | 25.70 | — | — | — | — |
| Receivables turnover | 5.13 | 4.88 | 4.54 | 5.33 | 4.74 | — | — | — | — |
| Payables turnover | 12.93 | 11.26 | 15.52 | 12.57 | 10.38 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 71.22 | 74.73 | 80.33 | 68.47 | 76.93 | — | — | — | — |
| Days inventory outstanding (DIO) | 10.42 | 12.26 | 12.36 | 16.26 | 14.20 | — | — | — | — |
| Days payables outstanding (DPO) | 28.24 | 32.42 | 23.52 | 29.04 | 35.15 | — | — | — | — |
| Cash conversion cycle | 53.40 | 54.57 | 69.17 | 55.69 | 55.98 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.51 | 0.59 | 1.88 | 1.05 | 1.14 | 1.30 | 1.25 | 1.28 | 1.22 |
| FCF / Net income | 0.31 | 0.30 | 1.02 | 0.63 | 0.79 | 0.79 | 0.80 | 0.76 | 0.78 |
| FCF margin | +6.03% | +4.01% | +5.34% | +6.39% | +7.88% | +6.62% | +6.65% | +6.40% | +6.63% |
| OCF margin | +10.00% | +7.93% | +9.86% | +10.69% | +11.34% | +10.85% | +10.34% | +10.82% | +10.43% |
| CapEx / Revenue | +3.97% | +3.92% | +4.52% | +4.31% | +3.46% | +4.02% | +4.00% | +4.11% | +4.09% |
| CapEx / D&A | 1.14 | 1.07 | 1.33 | 1.29 | 0.99 | — | — | — | — |
| Stock-based comp / Revenue | +0.26% | +0.27% | +0.22% | +0.25% | +0.28% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 43.54 | 31.47 | 13.53 | 28.34 | 29.08 | 27.93 | 30.14 | 32.63 | 34.20 |
| EPS · basic | 43.70 | 31.61 | 13.57 | 28.39 | 29.14 | 27.68 | 30.03 | 32.49 | 34.71 |
| Book value / share | 80.34 | 98.41 | 97.34 | 103.80 | 115.95 | 112.80 | 125.03 | 131.06 | 141.89 |
| Tangible BV / share | -32.11 | -16.63 | -19.91 | -16.81 | -6.75 | 112.80 | 125.03 | 131.06 | 141.89 |
| Sales / share | 221.67 | 235.23 | 258.49 | 278.57 | 291.75 | 303.60 | 327.59 | 342.91 | 361.05 |
| Operating CF / share | 22.17 | 18.64 | 25.49 | 29.79 | 33.08 | 32.94 | 33.87 | 37.11 | 37.67 |
| Free cash flow / share | 13.37 | 9.42 | 13.82 | 17.79 | 23.00 | 20.09 | 21.77 | 21.95 | 23.93 |
| Dividends / share | 6.11 | 6.76 | 7.34 | 8.05 | 8.99 | 8.65 | 9.39 | 10.31 | 10.57 |
| Payout ratio | +14.03% | +21.49% | +54.28% | +28.41% | +30.92% | +34.23% | +34.64% | +35.51% | +34.38% |
| Retention ratio | +85.97% | +78.51% | +45.72% | +71.59% | +69.08% | +65.77% | +65.36% | +64.49% | +65.62% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +2.62% | +7.34% | +4.44% | +2.24% | +4.82% | +6.70% | +6.04% | +3.84% | +4.74% |
| Gross profit · YoY | — | +2.83% | -12.35% | +27.64% | -0.59% | -0.72% | +9.15% | +5.44% | +3.98% | +3.91% |
| Profit | ||||||||||
| Operating income · YoY | — | -36.28% | -29.55% | +72.25% | -2.06% | -7.95% | +9.80% | +3.61% | +3.30% | -2.46% |
| EBITDA · YoY | — | -12.02% | -44.96% | +61.72% | +5.35% | -7.86% | +6.95% | +1.68% | +8.98% | -1.30% |
| Net income · YoY | — | -30.11% | -58.01% | +103.02% | +0.19% | -12.45% | +5.99% | +8.59% | +4.42% | -5.65% |
| Operating | ||||||||||
| EBIT · YoY | — | -15.38% | -54.42% | +89.17% | +4.83% | -12.18% | +6.35% | +9.21% | +0.18% | -3.03% |
| R&D · YoY | — | +9.09% | 0.00% | -8.33% | 0.00% | +13.69% | +3.09% | +6.04% | +2.70% | +3.10% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -27.72% | -57.01% | +109.46% | +2.61% | -3.94% | +7.89% | +8.28% | +4.79% | -2.97% |
| EPS · basic · YoY | — | -27.67% | -57.07% | +109.21% | +2.64% | -4.99% | +8.48% | +8.18% | +6.84% | -2.84% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $16.25B | $16.82B | $17.94B | $20.19B | $19.74B | $20.19B | $21.99B | $23.6B | $25.06B |
| Net debt | $12.72B | $14.25B | $14.83B | $15.84B | $15.34B | $15.84B | $17.35B | $18.81B | $20.07B |
| Net debt / EBITDA | 1.46 | 1.85 | 3.51 | 2.32 | 2.13 | 2.39 | 2.44 | 2.61 | 2.55 |
| Debt / equity | 1.26 | 1.10 | 1.21 | 1.32 | 1.18 | 1.24 | 1.23 | 1.24 | 1.23 |
| Debt / assets | +38.16% | +38.45% | +38.54% | +40.91% | +38.42% | +38.75% | +37.84% | +39.03% | +40.43% |
| Equity / assets | +30.36% | +34.99% | +31.79% | +30.98% | +32.45% | +31.35% | +30.82% | +31.45% | +32.76% |
| Coverage | |||||||||
| EBITDA / interest expense | 15.71 | 15.19 | 7.76 | 11.01 | 10.83 | 10.35 | 10.26 | 9.78 | 10.07 |
| Operating income / interest | 10.16 | 7.12 | 4.66 | 7.04 | 6.44 | 6.14 | 6.25 | 6.07 | 5.93 |
| Interest expense | $556M | $506M | $545M | $621M | $665M | $641.57M | $691.76M | $737.95M | $781.32M |
| Liquidity | |||||||||
| Current ratio | 1.28 | 1.06 | 1.13 | 1.00 | 1.09 | — | — | — | — |
| Quick ratio | 1.10 | 0.87 | 0.98 | 0.85 | 0.95 | — | — | — | — |
| Cash ratio | 0.37 | 0.22 | 0.26 | 0.31 | 0.32 | — | — | — | — |
| Working capital | $2.71B | $721M | $1.56B | -$40M | $1.22B | — | — | — | — |
| Working capital / revenue | +7.61% | +1.97% | +3.97% | -0.10% | +2.90% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 2.32x | 2.07x |
| Earnings yield | 5.1% | 6.1% |
| FCF yield | 4.0% | 3.8% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 25.1% | 27.3% |
| ROA | 8.1% | 8.5% |
| ROIC | 9.2% | 9.8% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 2.13 | 2.32 |
| Interest coverage | — | — |
| Current ratio | 1.09x | 1.00x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).