Northrop Grumman's gross profit for the
three
months ended in Mar. 2024 was $2,133 Mil. Northrop Grumman's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was $6,699 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Northrop Grumman's gross profit for the
three
months ended in Mar. 2024 was $2,133 Mil. Northrop Grumman's Revenue for the
three
months ended in Mar. 2024 was $10,133 Mil. Therefore, Northrop Grumman's Gross Margin % for the quarter that ended in Mar. 2024 was 21.05%.
Northrop Grumman had a gross margin of 21.05% for the quarter that ended in Mar. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of Northrop Grumman was 23.98%. The lowest was 16.67%. And the median was 22.01%.
Warning Sign:
Northrop Grumman Corp gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
Northrop Grumman Gross Profit Historical Data
The historical data trend for Northrop Grumman's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Northrop Grumman's Gross Profit
For the Aerospace & Defense subindustry, Northrop Grumman's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northrop Grumman's Gross Profit Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Gross Profit distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Gross Profit falls into.
Northrop Grumman Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Northrop Grumman's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,699 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Northrop Grumman had a gross margin of 21.05% for the quarter that ended in Mar. 2024 => Competition eroding margins
Northrop Grumman Gross Profit Related Terms
Thank you for viewing the detailed overview of Northrop Grumman's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Northrop Grumman (Northrop Grumman) Business Description
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber. Defense systems makes artillery and missile ammunition and guidance systems, missile defense systems, and conducts maintenance and upgrades on numerous military aircraft. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NOC has been successfully added to your 