Annual Financial Reports for Northrop Grumman Company

An American aerospace and defense manufacturer is Northrop Grumman. Northrop Corporation is the business’s new name, originally established in 1939 as Northrop Aviation. Northrop and Grumman Corporation combined in 1994, changing the company’s name to Northrop Grumman. Worldwide, Northrop Grumman is the biggest manufacturer of military aircraft. The company’s offerings include the B-2 Spirit bomber, F-22 Raptor fighter, E-2C Hawkeye early warning aircraft, and RQ-4 Global Hawk uncrewed aerial vehicle. Other military goods made by Northrop Grumman include electronic warfare systems, radar, and missiles. The main office of Northrop Grumman is located in Falls Church, Virginia. The business employs over 70,000 people and operates in more than 25 nations. The company manufactures a range of items for the aerospace and defense sectors, such as satellites, aircraft, and cybersecurity systems.

The most recent two-year current ratio and profit margin ratio,

For 2018 and 2017, Northrop Grumman’s current ratios are 2.4 and 2.2, respectively. This indicates that the business’s assets are sufficient to offset its liabilities. Northrop Grumman’s profit margin ratio was 10.4% in 2017 and 11.5% in 2018.

The ability of a business to pay its debts is gauged by its current ratio. In other words, Northrop Grumman has $2.40 in assets for every $1 in liabilities if the ratio is 2.4. In other words, Northrop Grumman has $2.20 in assets for every $1 in liabilities or a ratio of 2.2. The profit margin ratio gauges the profitability of an organization. With a profit margin of 11.5%, Northrop Grumman makes $0.11.5 for every $1 in revenue. With a profit margin of 10.4%, Northrop Grumman makes $0.10.4 for every $1 in revenue. From 2017 to 2018, the current and profit margin ratios grew. This shows that Northrop Grumman is getting more profitable and resource-efficient. A company’s capacity to cover its current liabilities with its current assets is gauged by its current ratio. The corporation is more financially secure the greater the ratio. The profit margin ratio gauges the profitability of an organization. A more profitable corporation is one with a larger profit margin ratio. Northrop Grumman’s current ratio grew from 2017 to 2018, demonstrating an improvement in the company’s capacity to meet short-term obligations.

The remarks from the management discussion and analysis

The most recent annual report’s Management Discussion and Analysis remarks describe the company’s financial performance, corporate strategies, and risk factors. The following are the discussion’s main points:

– Northrop Grumman’s financial performance in 2018 was robust, with sales growing by 9% and earnings per share increasing by 14%.

– The company’s business tactics include investing money into cutting-edge technology, increasing its global reach, and building its clientele.

– Risk considerations for Northrop Grumman include reliance on government contracts, rivalry with other aerospace and defense firms, and exposure to cyber threats.

The most recent annual report, the auditor’s report

PricewaterhouseCoopers LLP completed the most recent annual report’s auditor’s report. According to the opinion offered, Northrop Grumman’s financial statements were produced using widely accepted accounting standards. This is a favorable judgment, indicating that it is safe to assume that the financial statements accurately reflect Northrop Grumman’s financial situation. This is significant since it shows that the financial statements appropriately reflect Northrop Grumman’s financial situation. Investors can utilize this information to help them decide whether or not to invest in the firm by enabling them to make well-informed judgments.

Evaluation of the selected business.

This short preliminary review demonstrates that Northrop Grumman is a stable and successful business. Risks to be thought about, meanwhile, include its reliance on government contracts and exposure to cyber threats.

References

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