Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Northrop Grumman Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Turnover Ratios
Inventory turnover 29.78 35.02 38.63 33.95 35.63
Receivables turnover 24.22 24.31 24.52 25.52 20.78
Payables turnover 11.26 12.93 16.24 11.94 10.68
Working capital turnover 40.62 12.32 6.38 27.05 21.40
Average No. Days
Average inventory processing period 12 10 9 11 10
Add: Average receivable collection period 15 15 15 14 18
Operating cycle 27 25 24 25 28
Less: Average payables payment period 32 28 22 31 34
Cash conversion cycle -5 -3 2 -6 -6

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Northrop Grumman Corp. inventory turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Northrop Grumman Corp. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Northrop Grumman Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Northrop Grumman Corp. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Northrop Grumman Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Northrop Grumman Corp. operating cycle deteriorated from 2020 to 2021 and from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Northrop Grumman Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Northrop Grumman Corp. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022.

Inventory Turnover

Northrop Grumman Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 29,128 28,399 29,321 26,582 23,304
Inventoried costs, net 978 811 759 783 654
Short-term Activity Ratio
Inventory turnover1 29.78 35.02 38.63 33.95 35.63
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.81 0.75 0.78 0.94
Caterpillar Inc. 2.54 2.53 2.55 3.25
Eaton Corp. plc 4.04 4.48 5.88 5.11
GE Aerospace 3.19 3.40 3.80 4.74
Honeywell International Inc. 4.04 4.29 4.94 5.51
Lockheed Martin Corp. 18.68 19.45 16.01 14.22
RTX Corp. 5.03 5.65 5.11 5.21
Inventory Turnover, Sector
Capital Goods 2.28 2.28 2.28 2.61
Inventory Turnover, Industry
Industrials 3.99 3.87 3.61 3.94

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Inventory turnover = Cost of sales ÷ Inventoried costs, net
= 29,128 ÷ 978 = 29.78

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Northrop Grumman Corp. inventory turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Receivables Turnover

Northrop Grumman Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Sales 36,602 35,667 36,799 33,841 30,095
Accounts receivable, net 1,511 1,467 1,501 1,326 1,448
Short-term Activity Ratio
Receivables turnover1 24.22 24.31 24.52 25.52 20.78
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 26.46 23.58 29.75 23.44
Caterpillar Inc. 6.39 5.68 5.33 5.92
Eaton Corp. plc 5.09 5.95 6.15 6.22
GE Aerospace 4.09 4.55 4.37 5.22
Honeywell International Inc. 4.77 5.04 4.78 4.90
Lockheed Martin Corp. 26.34 34.15 33.06 25.59
RTX Corp. 7.36 6.66 6.11 5.70
Receivables Turnover, Sector
Capital Goods 7.36 7.57 7.30 7.40
Receivables Turnover, Industry
Industrials 7.80 7.60 7.49 7.67

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Receivables turnover = Sales ÷ Accounts receivable, net
= 36,602 ÷ 1,511 = 24.22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Northrop Grumman Corp. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Payables Turnover

Northrop Grumman Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 29,128 28,399 29,321 26,582 23,304
Trade accounts payable 2,587 2,197 1,806 2,226 2,182
Short-term Activity Ratio
Payables turnover1 11.26 12.93 16.24 11.94 10.68
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 6.18 6.40 4.94 4.63
Caterpillar Inc. 4.76 4.36 4.75 6.15
Eaton Corp. plc 4.51 4.75 6.24 6.78
GE Aerospace 2.98 3.32 3.67 4.20
Honeywell International Inc. 3.53 3.40 3.86 4.25
Lockheed Martin Corp. 27.25 74.34 64.48 40.16
RTX Corp. 5.40 5.93 5.56 5.28
Payables Turnover, Sector
Capital Goods 5.21 5.60 5.54 5.63
Payables Turnover, Industry
Industrials 7.58 7.74 7.44 7.40

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Payables turnover = Cost of sales ÷ Trade accounts payable
= 29,128 ÷ 2,587 = 11.26

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Northrop Grumman Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022.

Working Capital Turnover

Northrop Grumman Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current assets 12,488 12,426 15,344 10,685 9,680
Less: Current liabilities 11,587 9,530 9,580 9,434 8,274
Working capital 901 2,896 5,764 1,251 1,406
 
Sales 36,602 35,667 36,799 33,841 30,095
Short-term Activity Ratio
Working capital turnover1 40.62 12.32 6.38 27.05 21.40
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 3.42 2.34 1.69 15.57
Caterpillar Inc. 4.62 3.54 2.84 4.04
Eaton Corp. plc 8.70 65.65 5.42 5.95
GE Aerospace 7.93 4.94 2.26 7.03
Honeywell International Inc. 7.03 5.86 3.64 5.92
Lockheed Martin Corp. 12.93 11.52 12.01 19.15
RTX Corp. 20.15 9.75 7.52 26.47
Working Capital Turnover, Sector
Capital Goods 6.79 5.01 3.24 8.95
Working Capital Turnover, Industry
Industrials 9.67 6.90 4.47 10.00

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Working capital turnover = Sales ÷ Working capital
= 36,602 ÷ 901 = 40.62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Northrop Grumman Corp. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Average Inventory Processing Period

Northrop Grumman Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Inventory turnover 29.78 35.02 38.63 33.95 35.63
Short-term Activity Ratio (no. days)
Average inventory processing period1 12 10 9 11 10
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 452 486 467 388
Caterpillar Inc. 144 144 143 112
Eaton Corp. plc 90 82 62 71
GE Aerospace 114 107 96 77
Honeywell International Inc. 90 85 74 66
Lockheed Martin Corp. 20 19 23 26
RTX Corp. 73 65 71 70
Average Inventory Processing Period, Sector
Capital Goods 160 160 160 140
Average Inventory Processing Period, Industry
Industrials 91 94 101 93

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 29.78 = 12

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Northrop Grumman Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.

Average Receivable Collection Period

Northrop Grumman Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Receivables turnover 24.22 24.31 24.52 25.52 20.78
Short-term Activity Ratio (no. days)
Average receivable collection period1 15 15 15 14 18
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 14 15 12 16
Caterpillar Inc. 57 64 68 62
Eaton Corp. plc 72 61 59 59
GE Aerospace 89 80 83 70
Honeywell International Inc. 77 72 76 75
Lockheed Martin Corp. 14 11 11 14
RTX Corp. 50 55 60 64
Average Receivable Collection Period, Sector
Capital Goods 50 48 50 49
Average Receivable Collection Period, Industry
Industrials 47 48 49 48

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 24.22 = 15

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Northrop Grumman Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 12 10 9 11 10
Average receivable collection period 15 15 15 14 18
Short-term Activity Ratio
Operating cycle1 27 25 24 25 28
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 466 501 479 404
Caterpillar Inc. 201 208 211 174
Eaton Corp. plc 162 143 121 130
GE Aerospace 203 187 179 147
Honeywell International Inc. 167 157 150 141
Lockheed Martin Corp. 34 30 34 40
RTX Corp. 123 120 131 134
Operating Cycle, Sector
Capital Goods 210 208 210 189
Operating Cycle, Industry
Industrials 138 142 150 141

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 12 + 15 = 27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Northrop Grumman Corp. operating cycle deteriorated from 2020 to 2021 and from 2021 to 2022.

Average Payables Payment Period

Northrop Grumman Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Payables turnover 11.26 12.93 16.24 11.94 10.68
Short-term Activity Ratio (no. days)
Average payables payment period1 32 28 22 31 34
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 59 57 74 79
Caterpillar Inc. 77 84 77 59
Eaton Corp. plc 81 77 58 54
GE Aerospace 123 110 100 87
Honeywell International Inc. 103 107 95 86
Lockheed Martin Corp. 13 5 6 9
RTX Corp. 68 62 66 69
Average Payables Payment Period, Sector
Capital Goods 70 65 66 65
Average Payables Payment Period, Industry
Industrials 48 47 49 49

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.26 = 32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Northrop Grumman Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022.

Cash Conversion Cycle

Northrop Grumman Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 12 10 9 11 10
Average receivable collection period 15 15 15 14 18
Average payables payment period 32 28 22 31 34
Short-term Activity Ratio
Cash conversion cycle1 -5 -3 2 -6 -6
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 407 444 405 325
Caterpillar Inc. 124 124 134 115
Eaton Corp. plc 81 66 63 76
GE Aerospace 80 77 79 60
Honeywell International Inc. 64 50 55 55
Lockheed Martin Corp. 21 25 28 31
RTX Corp. 55 58 65 65
Cash Conversion Cycle, Sector
Capital Goods 140 143 144 124
Cash Conversion Cycle, Industry
Industrials 90 95 101 92

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 12 + 1532 = -5

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Northrop Grumman Corp. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022.