Northrop Grumman Corporation — Earnings Quality Grade F
NOC · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 12 days, change +1 days YoY
AR growth 8.1% vs revenue growth 2.2%
Revenue 2.2%, CFFO 8.4%. Cash follows revenue
Expense Quality
Inventory -10.0% vs COGS 3.0%. Normal
CapEx growth -17.9% vs revenue 2.2%. Normal
SG&A/Gross Profit = 48.5%. Normal
Gross margin 19.8%, change -0.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.14. Profits backed by cash
FCF $3.3B, FCF/NI = 0.79
Accruals ratio = -1.1%. Low accruals
Cash $4.4B covers only 26% of debt $17.0B
Balance Sheet Health
Goodwill+Intangibles $17.4B = 105% of equity. Over 50%
Debt/EBITDA = 2.4x. Healthy
Other assets 8.1% vs revenue 2.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.44 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09