Northrop Return on Invested Capital Trend from 2010 to 2022

NOC
 Stock
  

USD 479.58  9.27  1.97%   

Northrop Grumman Return on Invested Capital is decreasing over the years with slightly volatile fluctuation. Ongoing Return on Invested Capital is projected to grow to 0.19 this year. From 2010 to 2022 Northrop Grumman Return on Invested Capital quarterly data regression line had arithmetic mean of 0.26 and r-squared of  0.68. Northrop Grumman Net Income is projected to increase significantly based on the last few years of reporting. The past year's Net Income was at 7 Billion. The current year Weighted Average Shares is expected to grow to about 203.7 M, whereas Direct Expenses is forecasted to decline to about 24.4 B.
  
Check Northrop Grumman financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Northrop main balance sheet or income statement drivers, such as Direct Expenses of 24.4 B, Consolidated Income of 3.3 B or Cost of Revenue of 30.2 B, as well as many exotic indicators such as Interest Coverage of 9.34, Long Term Debt to Equity of 0.96 or Calculated Tax Rate of 25.73. Northrop financial statements analysis is a perfect complement when working with Northrop Grumman Valuation or Volatility modules. It can also supplement Northrop Grumman's financial leverage analysis and stock options assessment as well as various Northrop Grumman Technical models . Additionally, see the analysis of Northrop Grumman Correlation against competitors.

Northrop Return on Invested Capital Breakdown

Showing smoothed Return on Invested Capital of Northrop Grumman Corp with missing and latest data points interpolated. Return on Invested Capital is ratio estimated by dividing Earning Before Interest and Taxes EBIT by [InvCapAvg]. [InvCap] is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.Northrop Grumman's Return on Invested Capital historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Northrop Grumman's overall financial position and show how it may be relating to other accounts over time.
Return on Invested Capital10 Years Trend
Decreasing
Slightly volatile
   Return on Invested Capital   
Share
       Timeline  

Northrop Return on Invested Capital Regression Statistics

Arithmetic Mean 0.26
Geometric Mean 0.25
Coefficient Of Variation 35.42
Mean Deviation 0.08
Median 0.28
Standard Deviation 0.09
Sample Variance 0.008743
Range 0.30
R-Value(0.82)
Mean Square Error 0.003094
R-Squared 0.68
Significance 0.00056591
Slope(0.019734)
Total Sum of Squares 0.10

Northrop Return on Invested Capital History

2010 0.28
2011 0.42
2012 0.4
2013 0.33
2016 0.25
2018 0.2
2019 0.12
2020 0.17
2021 0.15
2022 0.19

About Northrop Grumman Financial Statements

There are typically three primary documents that fall into the category of financial statements. These documents include Northrop Grumman income statement, its balance sheet, and the statement of cash flows. Northrop Grumman investors use historical funamental indicators, such as Northrop Grumman's Return on Invested Capital, to determine how well the company is positioned to perform in the future. Although Northrop Grumman investors may use each financial statement separately, they are all related. The changes in Northrop Grumman's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northrop Grumman's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. We offer a historical overview of the basic patterns found on Northrop Grumman Financial Statements. Understanding these patterns can help to make the right decision on long term investment in Northrop Grumman. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Invested Capital 0.15  0.19 
Invested Capital31.4 B24.9 B
Invested Capital Average29.9 B23.9 B
Market Capitalization58.4 B51.1 B
Working Capital6.6 B5.2 B
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company was founded in 19 and is based in Falls Church, Virginia. Northrop Grumman operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 88000 people.

Northrop Grumman Investors Sentiment

The influence of Northrop Grumman's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Northrop. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Northrop Grumman's public news can be used to forecast risks associated with investment in Northrop. The trend in average sentiment can be used to explain how an investor holding Northrop can time the market purely based on public headlines and social activities around Northrop Grumman Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Northrop Grumman's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Northrop Grumman's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Northrop Grumman's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Northrop Grumman.

Northrop Grumman Implied Volatility

    
  32.43  
Northrop Grumman's implied volatility exposes the market's sentiment of Northrop Grumman Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Northrop Grumman's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Northrop Grumman stock will not fluctuate a lot when Northrop Grumman's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Northrop Grumman in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Northrop Grumman's short interest history, or implied volatility extrapolated from Northrop Grumman options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Northrop Grumman Corp using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see the analysis of Northrop Grumman Correlation against competitors. Note that the Northrop Grumman Corp information on this page should be used as a complementary analysis to other Northrop Grumman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for Northrop Stock analysis

When running Northrop Grumman Corp price analysis, check to measure Northrop Grumman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northrop Grumman is operating at the current time. Most of Northrop Grumman's value examination focuses on studying past and present price action to predict the probability of Northrop Grumman's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Northrop Grumman's price. Additionally, you may evaluate how the addition of Northrop Grumman to your portfolios can decrease your overall portfolio volatility.
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Is Northrop Grumman's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.056
Market Capitalization
74.2 B
Quarterly Revenue Growth YOY
-0.038
Return On Assets
0.11
Return On Equity
0.46
The market value of Northrop Grumman Corp is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine Northrop Grumman value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.