Northrop Grumman Corporation (NOC)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.71	25.47	24.06	21.90	5.50	21.93	18.07	18.00	4.88	18.19	14.64	20.61	5.13	23.42	19.69	21.83	5.54	18.03	17.45	16.04
DSO	days	63.87	14.33	15.17	16.67	66.39	16.64	20.20	20.27	74.73	20.07	24.92	17.71	71.22	15.58	18.54	16.72	65.87	20.24	20.92	22.75

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.71
= 63.87

Based on the data provided for Northrop Grumman Corporation's days of sales outstanding (DSO), we can observe fluctuations in the collection period over the quarters.

The DSO for Northrop Grumman ranged from a low of 14.33 days on September 30, 2024, to a high of 74.73 days on December 31, 2022.

Overall, a lower DSO indicates that Northrop Grumman is collecting receivables more efficiently, with the shortest collection period seen on September 30, 2024. Conversely, a higher DSO implies a longer time to collect receivables, as evidenced by the longest collection period on December 31, 2022.

Analyzing the trend, we can see that there are periods of improvement in collecting receivables efficiently, particularly in the most recent quarters, with decreasing DSO values observed. However, there have been instances of spikes in the collection period, such as on December 31, 2022, and December 31, 2024, where the company faced challenges in timely collection.

It is essential for Northrop Grumman to consistently monitor and manage its DSO to ensure effective working capital management and optimize its cash flow position. This analysis indicates that the company's collection efficiency has shown variability, and strategic measures may be required to maintain a stable DSO going forward.