Question
What are some pros and cons of the following company if any? Northrop Grumman Northrop Grumman is one of the leading government contractors in the
What are some pros and cons of the following company if any?
Northrop Grumman
Northrop Grumman is one of the leading government contractors in the US. They have facilities throughout the US and in 16 other countries. They employ thousands of American's in different aspects of industry. Their leading segment is aerospace. This makes up the majority of their sales income at $10 billion in 2015. They also are segmented into three other areas. These are electronic systems, information systems, and technical services. Electronic systems brought in $6.8 billion, information systems was $5.8 billion, and technical services coming in last at $2.8 billion. Northrop Grumman is a major defense contractor and with that comes high cost items. Like most assets these items depreciate and in 2015 they depreciated at $467 million. Although the statement also shows that in 2015 their total assets between all segments would rise almost $100 million from 2014 while corporate assets fell over $2 billion between the same years. While all four segments are part of the same company they are still different. Each segment is able to keep itself in the black which is good for the company. Businesses sometimes keep programs running for the customers even though the lose money each year. They can do this for a few different reasons, but the money that is lost is then made up with other segments of the business that are more profitable. Northrop Grumman does not have this issue since each segment is producing a profit for them.
http://www.northropgrumman.com/AboutUs/AnnualReports/Documents/pdfs/2015_noc_ar.pdf
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