Northrop Grumman Corporation (NOC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.69	3.17	3.30	3.75	4.21	5.00	5.34	5.79	5.89	5.73	5.74	5.57	6.17	4.43	4.44	4.65	4.63	3.89	4.05	11.36
DOH	days	98.87	115.12	110.66	97.43	86.75	73.06	68.30	63.04	62.01	63.75	63.55	65.53	59.20	82.43	82.12	78.50	78.91	93.86	90.14	32.13

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.69
= 98.87

The days of inventory on hand (DOH) ratio for Northrop Grumman Corp. fluctuated over the past eight quarters. The DOH measures the average number of days a company holds its inventory before selling it. A lower DOH indicates that the company is selling its inventory faster, while a higher DOH suggests slower inventory turnover.

In the most recent quarter, as of December 31, 2023, Northrop Grumman Corp. had a DOH of 12.36 days, which was lower than the previous quarter's 16.06 days. This decrease implies that the company's inventory turnover improved, as it took fewer days to sell its inventory.

Looking at the trend over the past eight quarters, there were fluctuations in the DOH ratio, with some quarters showing an increase and others showing a decrease. However, the DOH remained within a relatively narrow range, indicating a consistent level of inventory management.

It is essential to consider the industry and company-specific factors to fully interpret the DOH ratio. A lower DOH could signify efficient inventory management, while a higher DOH might indicate potential issues with inventory control or slower sales.

Overall, the analysis of Northrop Grumman Corp.'s DOH suggests that the company has experienced fluctuations in its inventory turnover over the past quarters, and further assessment of the company's inventory management practices and industry benchmarks would provide a more comprehensive understanding of its performance in this area.