Aureus
COkay

Northrop Grumman Corporation(NOC)

C

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin7.9%Free Cash Flow / Revenue
Cash Conversion113.7%Operating CF / Net Income
Free Cash Flow$3.3B
Revenue$42.0B
Net Cash-$12.6BNet debt position
Debt / FCF5.1xElevated debt burden
Current Ratio1.10Adequate short-term liquidity
YoY FCF Growth+83.6%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5Elevated debt-to-FCF ratio (5.1x)
→
+1Strong YoY FCF growth (83.6% YoY)
→
-0.5Highly volatile FCF (consistency: 1.63)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (114%)
  • Strong YoY FCF growth (+83.6%)
  • FCF trend is improving

Concerns

  • Low FCF margin (7.9%)
  • Heavy debt position ($12.6B)
  • High debt-to-FCF ratio (5.1x)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin7.9%
Net Margin10.0%
Operating CF Margin11.3%
CapEx Ratio3.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$12.6BNet debt position
Debt / FCF5.1xElevated debt burden
Current Ratio1.10Adequate liquidity
Debt / Equity1.02Moderate leverage

Quarterly FCF Trend

+83.6% YoYImproving (+83.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameNorthrop Grumman Corporation
SectorIndustrials
Free Cash Flow$3.3B
Revenue$42.0B
Net Income$4.2B
Operating Cash Flow$4.8B
Capital Expenditure$1.4B
FCF Margin7.9%
Cash Conversion Rate113.7%
Net Margin10.0%
Total Debt$17.0B
Total Cash$4.4B
Net Cash-$12.6B
Current Ratio1.10
Debt / Equity1.02
Debt / FCF5.1x
YoY FCF Growth+83.6%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance