Northrop Grumman Corporation cash flow to debt ratio of 24.10% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Northrop Grumman Corporation's free cash flow has increased 26.17% from $2.62B last year to $3.31B, signaling increasing performance

Northrop Grumman Corporation's debt to equity ratio is 0.91, which means that the company's assets are unhealthy financed, signaling financial risk.

Northrop Grumman Corporation's debt has decreased relative to shareholder equity from 1.32 last year to 0.91 today, signaling strengthened financials

Northrop Grumman Corporation has a net debt to EBITDA ratio of 2.13x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Northrop Grumman Corporation's interest coverage ratio of 6.63 indicates that earnings with good margin can cover interest payments on company debt

Northrop Grumman Corporation's profit margin has increased (3.05%) in the last year from 10.17% to 10.48%, signaling increasing performance

Northrop Grumman Corporation's short-term assets of $15.10B exceed its short-term liabilities of $13.88B

Northrop Grumman Corporation's return on assets of 8.86% is higher than the 5.00% threshold, indicating efficient asset utilization

Northrop Grumman Corporation's return on equity of 26.58%, is higher than 15.00%, indicating good performance

Northrop Grumman Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Northrop Grumman Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Northrop Grumman Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Northrop Grumman Corporation has a free cash flow yield of 4.03%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Northrop Grumman Corporation's yearly earnings has increased 0.19% since last year from $4.17B to $4.18B, signaling increasing performance

Northrop Grumman Corporation's yearly revenue has increased 2.24% since last year from $41.03B to $41.95B, signaling increasing performance

ROIC 9.97% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Northrop Grumman Corporation's 3-year revenue CAGR of 4.65% is positive, indicating growing revenue over the past 3 years

Northrop Grumman Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Northrop Grumman Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Northrop Grumman Corporation is overvalued relative to its fair value price of 198.83 based on Discounted Cash Flow model

Northrop Grumman Corporation has an earnings yield of 5.48%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Northrop Grumman Corporation is overvalued relative to its fair value price of 247.30 based on EBITDA multiple model

Northrop Grumman Corporation has an EV/EBITDA ratio of 13.52x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Northrop Grumman Corporation is overvalued relative to its fair value price of 326.03 based on Earnings Fair Value model

Northrop Grumman Corporation has a PEG-ratio over 1 which is considered overvalued

Northrop Grumman Corporation has a price-to-book ratio of 4.59x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Northrop Grumman Corporation has a price-to-sales ratio of 1.91x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue