NOC Northrop Grumman Corporation

Exchange

NYSE

Sector

Capital Goods

Industry

Industrial Machinery/Components

Market Cap.

19.328B

Poor Cash Return on Invested Capital over the past 5 years

NOC has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NOC has only created $9.30 of cash for every $100 invested.

Figures in USD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Free Cash Flow	2.21B	2.53B	1.48B	1.68B	1.63B
divided by
Invested Capital	25.98B	21.27B	19.99B	19.33B	16.27B
Cash ROIC	8.49%	11.90%	7.40%	8.70%	10.00%

Poor Return on Equity over the past 5 years

NOC has shown an inability to deliver strong results for shareholders. This could be due to poor management, NOC operating in a highly competitive industry, or having a weak business in general.

NOC has only generated $9.69 of Earnings for every $100 of Shareholders' Equity.

Figures in USD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Net Income	1.79B	-1.26B	1.69B	2.05B	2.12B
divided by
Stockholders' Equity	17.69B	11.92B	12.69B	13.56B	10.34B
Return on Equity	10.12%	-10.59%	13.29%	15.14%	20.49%

Excellent Business Performance over the past 10 years

NOC has been able to maintain profitability in good times and bad. This could mean NOC has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

NOC has created positive free cash flow for 9 or more of the past 10 years.

Figures in USD. Fiscal year ends in December

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	1.15B	97.00M	1.26B	1.80B	1.02B	2.21B	2.53B	1.48B	1.68B	1.63B