Northrop Grumman Corporation (NOC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		2.78	2.50	2.76	3.01	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
DOH	days	131.16	146.28	132.41	121.43	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.78
= 131.16

The Days of Inventory on Hand (DOH) for Northrop Grumman Corporation has exhibited fluctuations over the given time period from March 31, 2020, to December 31, 2024:

- The DOH value started at 78.50 days on March 31, 2020, and showed a slight increase to 82.12 days by June 30, 2020.
- Over the next few quarters, the DOH remained relatively stable, hovering around 80 days, with a slight increase to 82.43 days by September 30, 2020.
- There was a significant decrease in DOH to 59.20 days by December 31, 2020, indicating efficient management of inventory levels.
- The DOH trend continued to improve in the following quarters, reaching the lowest value of 62.01 days by December 31, 2021.
- However, from March 31, 2022, to December 31, 2024, the DOH showed an upward trend, increasing steadily over time. Notably, there was a sharp increase in DOH from March 31, 2023 (97.43 days) to June 30, 2023 (110.66 days), and continued to rise significantly to 146.28 days by September 30, 2024.
- Despite some fluctuations, the overall trend suggests a general increase in DOH, signaling a possible build-up of inventory or slower inventory turnover during the latter part of the period.

Analyzing the DOH trend can provide insights into Northrop Grumman Corporation's inventory management efficiency, production planning, and supply chain processes, which are key factors influencing working capital and operational performance.