NOCNEUTRAL

Return on Equity (ROE)

28.5%

Updated 178h ago

Sector Performance

80th percentile

NOC

28.5%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

NOC’s Return on Equity (ROE) of 28.5% means the company generates $0.285 in profit for every dollar of shareholders’ equity — a measure of how efficiently it uses invested capital.

This is well above the sector median of 13.5%, placing NOC in the 80th percentile among its peers. However, there is no trend data: the year-over-year change, quarter-over-quarter change, and last eight quarters are all not available, with only a single historical value provided. The combination of a high ROE level with no trend information limits the ability to assess whether performance is improving or deteriorating, creating an ambiguous risk profile. The strong absolute level supports a positive view, but the lack of directional data prevents a bullish or bearish bias. This directly aligns with the overall NEUTRAL verdict — the metric shows an attractive efficiency rate, but the absence of trend leaves the outlook uncertain.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NOC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NOC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.