Final Evaluation: Northrop Grumman Corporation By Ian Troutman

History:

Founded: 1939 as Northrop Aircraft, Inc.

Merged with Grumman in 1994

Maintains B2 fleet

Key supplier to Boeing Company

Competitors

In order of Market Cap (billions)

  • BA (111.59B)
  • LMT (78.26B)
  • GD (58.62B)
  • RTN (45.12B)
  • NOC (43.38B)

Horizontal Analysis

Cash and Cash Equivalents decreased significantly

Accounts Receivables had increased

Prepaid Expenses had decreased significantly

Trade Accounts Payable increased

Total Shareholder Equity had decreased

Common Size Analysis

Strengths

Strong Goodwill increased from 46.91% of total assets to 48.60%

Higher EPS than its competitors

Weaknesses

High Long Term Debt

Ratio Analysis

ROA: NOC 11.41% vs BA 5.43% vs RTN 9.51%

Net Profit Margin: NOC 8.97% vs BA 5.176% vs RTN 8.72%

Biggest Opportunities

Trump Administration increase defense spending by 10%

Project partnership with Center Centre

FIN

Credits:

Created with images by skeeze - "navy blue angels new york city aircraft" • John D F - "Stearman" • Pexels - "computer display electronics" • TeroVesalainen - "mindmap brainstorm idea" • reynermedia - "Numbers And Finance" • Defence-Imagery - "fighter jet jet aircraft" • tpsdave - "a-10 thunderbolt united states air force" • reynermedia - "Numbers And Finance"

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