Northrop Grumman Corporation (NOC)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	39,290,000	38,685,000	37,881,000	37,106,000	36,602,000	35,208,000	34,957,000	35,307,000	35,667,000	37,240,000	37,603,000	37,336,000	36,799,000	35,308,000	34,700,000	34,272,000	33,841,000	33,276,000	32,886,000	31,549,000
Property, plant and equipment	US$ in thousands	9,653,000	9,173,000	8,976,000	8,838,000	8,800,000	8,325,000	8,125,000	8,017,000	7,894,000	7,277,000	7,164,000	7,093,000	7,071,000	7,187,000	7,063,000	6,956,000	6,912,000	6,611,000	6,522,000	6,420,000
Fixed asset turnover		4.07	4.22	4.22	4.20	4.16	4.23	4.30	4.40	4.52	5.12	5.25	5.26	5.20	4.91	4.91	4.93	4.90	5.03	5.04	4.91

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $39,290,000K ÷ $9,653,000K
= 4.07

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenues. A higher ratio indicates better utilization of fixed assets.

Northrop Grumman Corp.'s fixed asset turnover ratio has been relatively stable, ranging from 4.07 to 4.40 over the past eight quarters. This indicates that the company is consistently generating $4.07 to $4.40 in revenue for every dollar invested in fixed assets.

The relatively high and stable fixed asset turnover ratio suggests that Northrop Grumman Corp. is effectively leveraging its fixed assets to generate sales. This could be attributed to efficient operational management and effective utilization of its capital assets to drive revenues. However, it is important to consider other factors such as industry norms and the nature of the company's operations when evaluating the significance of this ratio.