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.
Eremadi, A., & Kamp, J. (2021). Fire Scout: The Navy, Northrop Grumman, and Acquisition in Adversity: A Case Study. Acquisition Research Program.
We’ll write everything from scratch
Before beginning work on this discussion forum, read Chapters 1 and 2 in your course textbook, Using Financial Accounting, and Chapters 3 and 7 from the Warren Buffett Accounting Book: Reading Financial Statements for Value Investing.
Select a company of interest that trades on the New York Stock Exchange (NYSE). The annual report can be found on your selected company’s website, usually under the heading “Investor Relations.” Select a company that a fellow student has not already posted. You can also access Mergent OnlineLinks to an external site. And search for a company and access their financial reports, such as Annual Reports: Mergent Online tip sheet links to an external site.
Retrieve the latest two annual reports, then complete the following:
- Calculate the current and profit margin ratios for the last two years and interpret the results. Please be sure to show your calculations. Then, explain what the ratios you calculated over the latest 2 years tell you.
- Locate the Management Discussion and Analysis comments in the latest annual report and discuss the main points in your own words.
- Locate the Auditor’s Report in the latest annual report, and discuss the opinion given and who conducted the audit.
- Based on this quick initial review, assess your chosen company.
Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly or credible resource besides the text. Cite your sources in APA Style with in-text citations and a reference list. The Writing Center’s APA: Citing Within Your PaperLinks to an external site. And APA: Formatting Your References ListLinks to an external site. Provide instructions and examples.
"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."